Internet Law News

Miami Man Arrested In Network Hacker Fraud

NEWARK, N.J. - A Miami man who purported to be a legitimate wholesaler of Internet-based phone services was arrested today for allegedly running a sophisticated fraud, by secretly hacking into the computer networks of unsuspecting Voice Over Internet Protocol (VOIP) telephone service providers, including one Newark-based company, to route his customers' calls, U.S. Attorney Christopher J. Christie announced.

Through his scheme, defendant Edwin Andres Pena, is alleged to have sold more than 10 million minutes of Internet phone service to telecom businesses at deeply discounted rates. The victimized Newark-based company, which transmits VOIP services for other telecom businesses, was billed for more than 500,000 unauthorized telephone calls routed through its calling network that were "sold" to the defendant's unwitting customers at those deeply discounted rates, according to a criminal Complaint unsealed with Pena's arrest.

Pena was arrested early this morning by Special Agents of the FBI at one of his residences in Miami, Florida. He is expected to make an initial appearance sometime today before a U.S. Magistrate Judge in federal court in Miami.

Pena, 23, a permanent legal resident of the United States of Venezuelan origin, enlisted the help of others, including a professional "hacker" in Spokane, Washington. The hacker allegedly performed an exhaustive scan of computer networks of unsuspecting companies and other entities in the United States and around the world, searching for vulnerable ports to infiltrate their computer networks to use them to route calls.

As a result of not having to pay the Newark-based company or other actual VOIP providers, revenues for Pena's telecom companies - Fortes Telecom, Inc. and Miami Tech & Consulting, Inc. - were virtually all profit. The Complaint states that law enforcement was able to identify more than $1 million he received from his telecom business customers that were directed into various bank accounts connected to Pena.

To disguise the money obtained from the hacking scheme, Pena purchased real estate, new cars, and a 40-foot motor boat, and put all of that property except for one car in the name of another individual identified in the complaint only as A.G.

Early this morning, Special Agents of the FBI executed nine search warrants in Florida, New Jersey, Washington, Illinois, Texas and California. After the defendant was arrested, federal agents executed a seizure warrant for Pena's 2004 BMW M3, which was purchased and significantly customized with proceeds from Pena's scheme. Read more at: www.fbi.gov

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	Did You Know?
	DNS translates the name into the corresponding IP address The Domain Name System is a system of mapping names to IP addresses. Because domain names are alphabetic, they're easier for humans to remember. The Internet, however, is really based on IP addresses. Every time you use a domain name, DNS translates the name into the corresponding IP address. It is similar to a phonebook for the Internet. See: Domain Name System