News Local Lithuanian with Cypriot bank accounts defrauded Google, Facebook out of $122m

Lithuanian with Cypriot bank accounts defrauded Google, Facebook out of $122m

A Lithuanian man on Wednesday pleaded guilty to US charges that he helped orchestrate a scheme to defraud Facebook Inc and Alphabet Inc’s Google out of more than $100 million, federal prosecutors announced.

Evaldas Rimasauskas, 50, entered his plea to one count of wire fraud before U.S. District Judge George Daniels in Manhattan. He faces a maximum sentence of 30 years in prison at his sentencing, currently scheduled for July 24.

Rimasauskas also agreed to forfeit about $49.7 million he personally obtained from the scheme, according to a court filing.

Paul Petrus, a lawyer for Rimasauskas, said the plea spoke for itself and declined to comment further.

Rimasauskas, originally from the Lithuanian capital of Vilnius, was extradited to the United States from Lithuania in August 2017.

U.S. prosecutors accused Rimasauskas and unnamed co-conspirators of bilking Google and Facebook out of more than $100 million by posing as an Asian hardware vendor and claiming that the companies owed the vendor money.

The prosecutors did not name the companies, but Taiwan-based Quanta Computer Inc confirmed after Rimasauskas’ arrest that it was the Asian vendor, and a Lithuanian court order in 2017 identified Google and Facebook as the victims.

The scheme defrauded Google out of $23 million and Facebook out of $99 million, according to that order. Prosecutors said Rimasauskas contributed to the scheme by setting up a fake company and a bank account in Latvia and Cyprus.

After money was wired from the tech companies to the bank accounts in Cyprus and Latvia, the Justice Department said in its statement, Rimasauskas “caused the stolen funds to be quickly wired into different bank accounts in various locations throughout the world, including Latvia, Cyprus, Slovakia, Lithuania, Hungary, and Hong Kong.” The statement added that he also helped to supply banks with forged documents to explain the large transfers of money.

The scheme is an example of a growing type of fraud called “business email compromise,” in which fraudsters ask for money using emails targeted at companies that work with foreign suppliers or regularly make wire transfers.

The Federal Bureau of Investigation said in February 2017 that losses from such scams since the agency began tracking them in 2013 totaled more than $3 billion.

(With information from Reuters and The NY Times)

Top Stories

Doctors stop mid-operation, dress patient in operating theatre and discharge him

Unbelievable and yet a now quintessentially Cypriot thing to happen. The incident in question is that doctors at a private hospital in Nicosia stopped...

Economic sentiment in Cyprus deteriorated slightly this September

In September 2020, economic sentiment in Cyprus deteriorated slightly as the Economic Sentiment Indicator (ESI-CypERC) decreased by 1.0 point compared to August 2020. According to...

Jiu Jitsu – Distribution for US and Canada set for November

Jiu Jitsu, the first Hollywood movie to be filmed in Cyprus under the incentive plan to promote the audiovisual industry starring Nicolas Cage, Alain...

Mainly fine weather with temperatures to rise for Tuesday

The weather on Tuesday will be mainly fine with temperatures set to rise to 40°C inland, around 35°C in all coasts, and 32°C in...

Man wanted for breaking and entering and vehicular theft (photo)

The man (pictured) is wanted by Police in connection with cases of breaking and entering and vehicular theft committed recently in Famagusta. Specifically, one breaking...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...