Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 1 of 23 PageID #:64 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION JUDGE. LEE UNITED STATES OF AMERICA 16 CR 438 v. MAGISTRATE JUDGE GILBERT ARTEM VAULIN, Violations: Title 1'7, United States aka ?tirm,? Code, Sections 506(a)(1)(A) and IEVGEN KUTSENKO, and Title 18, United aka ?Eugene Kutsenko? and States Code, Sections 371, ?chill,? and 1956(a)(2)(A), OLEKSANDR RADOSTIN, 1956(h), 2319(b)(1), and 2319(d)(2) aka ?Alex Radostin,? ?pioneer,? and ?pio? I AUG 2 3 2016 THOMAS G. BRUTON The SPECIAL JUNE 2015 GRAND JURY charges: CLERK, U.S. DISTRICT COURT 1. At times material to this indictment: a. ?BitTorrent? was a system for quickly distributing large ?les over the Internet. Instead of downloading a ?le, such as a movie, from a single source, BitTorrent enabled a user to connect to the computers of other BitTorrent users in order to simultaneously download and upload pieces of the ?le from and to other users. To use BitTorrent to download that movie, the user had to obtain a ?torrent? ?le for that movie, which contained instructions for identifying the Internet addresses of other BitTorrent users who had the movie, and for downloading the movie from those users. Once a user downloaded all of the pieces of that movie from the other BitTorrent users, the movie was automatically reassembled into its original form, ready for playing. Case: Document 9 Filed: 08/23/16 Page 2 of 23 PageID #:65 b. Kickass Torrents, or was a commercial website that facilitated and promoted the reproduction and distribution of copyrighted content over the Internet without the authorization of the copyright owners. KAT created a publicly accessible network that relied on BitTorrent technology, enabling users to copy and obtain copyrighted material directly from other KAT users for free. KAT also offered users a direct download feature that enabled users to download copyrighted material directly from computer servers associated with KAT rather than from other KAT users. Millions of members were registered with KAT, many of whom resided in the United States. KAT was originally hosted at the domain name kickasstorrents.com, but changed its domain name several times, including to kat.ph, kickassto, and kat.cr. c. Torcache.net was a commercial website that stored and hosted torrent ?les for the public to download, and encouraged users to upload torrent ?les for a variety of copyrighted content without authorization, such as movies and television shows. d. Leechmonster.com, rolly.com, solarmovie.com, solarmovieph, iwatch?lm.com, movie2b.com, hippomovies.com, bino.tv, and moviepronet were commercial websites that enabled registered users to download or stream copyrighted movies and other media directly from the website, usually in exchange for payment, without authorization from the copyright holders of that media (the ?direct download websites?). Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 3 of 23 PageID #:66 e. Defendants Artem Vaulin, levgen Kutsenko, and Oleksandr Radostin, residents of Ukraine, operated KAT, torcache.net, and the direct download websites. 2. From at least as early as in or about November 2008, to on or about July 20, 2016, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? IEVGEN KUTSENKO, aka ?Eugene Kutsenko? and ?chill,? and OLEKSANDR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pio,? defendants herein, together with others known and unknown to the Grand Jury, conspired: to willfully, and for purposes of. commercial advantage and private ?nancial gain, infringe copyrights by reproduction and distribution of at least ten copies and phonorecords of one or more copyrighted works with a total retail value of more than $2,500 during a 180-day period, in violation of Title 17, United States Code, Section 506(a)(1)(A) and Title 18, United States Code, Section 2319(b)(1); and to willfully, and for purposes of commercial advantage and private ?nancial gain, infringe a copyright by distribution of a work being prepared for commercial distribution, by making it available on a computer network accessible to members of the public, when defendants knew and should have known that that work was intended for commercial distribution, in violation of Title 17, United States Code, Section 506(a)(1)(C) and Title 18, United States Code, Section 2319(d)(2). 3. It was part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others designed, developed, and operated KAT, Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 4 of 23 PageID #:67 torcachenet, and the direct download websites in order to encourage, induce, facilitate, engage in, and generate millions of dollars from the unlawful reproduction and distribution of copyright?protected media, including movies?some of which were still playing in theaters?television shows, music, video games, computer software, and electronic books, without the authorization of the copyright holders. The Operation of KAT 4. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin made available and caused others to make available without authorization vast amounts of copyrighted content on KAT to millions of individuals in the United States by collecting and uploading torrent ?les to KAT, and soliciting and inducing registered users to upload torrent ?les to KAT, a signi?cant portion of which were torrent ?les for content protected by United States copyright laws. 5. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin operated and caused others to operate torcachenet to store and maintain the torrent ?les for infringed copyrighted content uploaded by KAT users and others, and to enable users and the general public to download those files. 6. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin created and implemented and caused others to create and implement ?Reputation? and ?User Achievement? systems to reward ?Veri?ed Uploaders? for posting torrent files for unauthorized copies of Case: Document 9 Filed: 08/23/16 Page 5 of 23 PageID #:68 copyrighted content on KAT, with such ?Achievements? to include badges given to registered users for having uploaded over 1,000 torrents. 7. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin permitted and caused others to permit registered users to solicit monetary donations from other KAT users. 8. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin operated and caused others to operate KAT in a manner that provided KAT users information about the identity, source, and quality of the content associated with torrent ?les on KAT, including the manner in which the content had been unlawfully copied. 9. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin indexed and caused others to index the torrent ?les made available on KAT, thus allowing KAT users to easily search for, locate, and obtain torrent ?les for their desired infringed copyrighted content. 10. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin sorted and caused others to sort the torrent ?les made available on KAT by genre, thus allowing KAT users to easily browse, locate, and obtain their desired infringed copyrighted content. 11. It was further part of the conspiracy that defendants Artern Vaulin, Ievgen Kutsenko, and Oleksandr Radostin updated and caused others to update KAT users regarding new infringed copyrighted content recently made available on KAT. Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 6 of 23 PageID #:69 12. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin enforced and caused others to enforce a code of conduct whereby registered users were banned from KAT for uploading torrents that contained malware, promoted other torrent sites, or facilitated the download of ?banned? content, such as advertising, certain categories of adult-themed content, and media that may have ?provoke[dl violence or hatred.? users were not, however, sanctioned for uploading torrents for infringed copyrighted content. 13. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others generated millions of dollars from the copyright-infringing material that KAT made available by soliciting and causing others to solicit extensive online advertising, sales of visitor traf?c, and KAT user donations. 14. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin, in order to hide the illicit proceeds generated from the conspiracy, instructed advertisers and caused others to instruct advertisers to deliver funds to bank accounts in the name of various corporate shell companies controlled by KAT and to hide the nature of the payments. 15. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin operated and caused others to operate a direct download feature on KAT to enable users to download copyright-protected material directly from the website which was operated by the defendants and others. Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 7 of 23 PageID #:70 16. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin changed and caused others to change the website domain name for KAT several times during the conspiracy from kickasstorrentscom to katph and from kickassto t0 katcr), in part to avoid and circumvent court orders that sought to block users? access to KAT because of copyright infringement, and provided guidance to users on website regarding how to avoid and circumvent these court orders. 17. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin used and caused others to use social media, such as Facebook and Twitter, to increase visitor traf?c to KAT by advertising KAT, communicating with KAT users, and providing updates about the new locations of website domain. 18. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others operated KAT and caused others to operate KAT using a network of computer servers from around the world, including computer servers located in Chicago, Illinois, which were rented through separate intermediaries in order to hide the conspiracy. 19. It was further part of the conspiracy that defendants Artem Vaulin, levgen Kutsenko, Oleksandr Radostin developed and caused others to develop a software program, often called a BitTorrent ?client,? which they made available on KAT and which facilitated the downloading of infringed copyrighted content. *3 Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 8 of 23 PageID #:71 20. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others created and operated and caused others to create and operate the website subtitlesourcecom, which they used to host ?les of subtitles in multiple languages for movies and television shows available on KAT. The Operation of the Direct Download Websites 21. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, and Oleksandr Radostin operated and caused others to operate the direct download websites that hosted or made available infringed copies of copyrighted works, including movies (some of which were still playing in theaters), music recordings, and television shows. 22. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others generated signi?cant funds from the copyright?infringing material available on the direct download websites by soliciting and causing others to solicit fees from users of the direct download websites, online advertising, and website traffic sales. 23. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others promoted and caused others to promote visitor traffic to one of their direct download websites, solarmoviecom, by providing KAT users with a hyperlink to solarmoviecom when they sought to download torrent files from KAT. Case: 1:16-cr-OO438 Document 9 Filed: 08/23/16 Page 9 of 23 PageID #:72 24. It was further part of the-conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others operated KAT, torcachenet, and the direct download websites through a Ukrainian?based company called in order to hide their operations and their role in the conspiracy. 25. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others concealed, misrepresented, and hid and caused to be concealed, misrepresented, and hidden, the existence and purpose of the conspiracy and the acts done in furtherance of the conspiracy. Overt Acts 26. In furtherance of the conspiracy and to accomplish its unlawful objectives, defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others committed and caused to be committed the following overt acts in the Northern District of Illinois and elsewhere: a. In or about 2011, defendants Artem Vaulin and Ievgen Kutsenko hired a software developer to create a BitTorrent client, and on or about September 22, 2011, Vaulin' and Kutsenko received an email with a copy of the ??nal version? of a BitTorrent client from the software developer. b. On or about November 24, 2011, defendant Artem Vaulin emailed a KAT employee regarding an invoice for advertising from a United States advertiser. c. On or about December 10, 2011, defendant Ievgen Kutsenko rented the website domain subtitlesource.com. Case: Document 9 Filed: 08/23/16 Page 10 of 23 PageID #:73 d. On or about December 12, 2011, defendant Artem Vaulin emailed a KAT employee a chart regarding advertising revenue in various countries. e. By on or about March 2012, defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others used and caused the use of computer servers in Chicago to provide mail services to administrators and employees. f. On or about May 24, 2012, defendant Artem Vaulin engaged in an electronic chat with an individual about an Italian court order aimed at blocking access to KAT. g. By on or about July 5, 2012, defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others used and caused the use of computer servers in Chicago to operate main website at the time, kickasstorrents.com. h. On or about September 25, 2012, defendant Ievgen Kutsenko received an email regarding defendant Artem Vaulin?s proposed improvements to torcachenet and how to better integrate torcachenet into KAT. i. On or about December 10, 2012, defendant Artem Vaulin created an ?urgent? task for one of employees to ?x integration With its social media accounts. j. On or about September 17, 2013, website made available and distributed copyrighted movies that had not yet been released on DVD, including, among many others, The Butler. 10 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 11 of 23 PageID #:74 On or about August 20, 2014, funds from Bitcoin denation address were redirected to a United States?based account belonging to defendant Artem Vaulin. 1. On or about November 24, 2015, an administrator at KAT sent an email to an undercover agent with the Internal Revenue Service, responding to the undercover agent?s inquiry about placing advertising on KAT. m. On or about December 9, 2015, an administrator at KAT sent an email to the undercover agent with the Internal Revenue Service that directed the undercover agent to send a payment for advertising on website to a Latvia? based account held in the name of a corporate shell company named Star Trading,? and requested that the undercover agent not ?mention KAT anywhere? in connection with the payment. n. On or about December 29, 2015, KAT accepted payment under the name GA Star Trading from a US. advertiser I that wire-transferred approximately $124,000 from a US. bank to the Latvian bank account held in the name GA Star Trading. 0. Between on or about January 13, 2016, and on or about January 20, 2016, defendant Artem Vaulin accessed and caused access to the administrative account for the Chicago computer servers rented by KAT. p. On or about March 9, 2016, as part of the undercover operation, the IRS Wire?transferred $1,500 from a location in Chicago to the GA Star Trading 11 Case: Document 9 Filed: 08/23/16 Page 12 of 23 PageID #:75 account in Latvia, consisting of a payment for advertising on KAT for five days at $300 per day. q. On or about March 15, 2016, KAT placed the Internal Revenue Service undercover agent?s advertisement on its website, which was presented to users when they clicked on a link that purportedly allowed users to ?[d]0wnlead faster? the prerelease, copyrighted movie Deadpo?ol. r. On or about March 31, 2016, KAT aCcepted payment to a WebMoney account from a US. advertiser that wire-transferred approximately $12,345 from a US. bank account to that WebMoney account. 3. On or about April 21, 2016, KAT accepted payment under the name of the corporate shell company ?Delovar Business? from an advertiser that wire- transferred approximately $134,595 to a Latvian bank account held in the name of Delovar Business. t. On or about May 11, 2016, an administrator at KAT sent an email to the underCover agent with the Internal Revenue Service that directed the undercover agent to send a paymentfor advertising on website to an Estonia? based account held in the name of a corporate shell company named ?Glomeratus,? and again requested that the undercover agent not ?mention as part of any transaction. u. On or about May 26, 2016, KAT accepted payment under the name Glomeratus from a US. advertiser that wire?transferred approximately 12 Case: Document 9 Filed: 08/23/16 Page 13 of 23 PageID #:76 $135,000 from a US. bank account to the Estonian-bank account held in the name of Glomeratus. v. Between on or about June 24, 2016, and on or about June 30, 2016, KAT made available and distributed Without authorization the following copyrighted movies that had not yet been released on DVD, among many others: Batman Superman: Dawn of Justice, Deadpool, X?Men Apocalypse, Captain America: Civil War, Teenage Mutant Ninja Turtles: Out of the Shadows, Central Intelligence, Warcraft, Now You See Me 2, and Jungle Book. I W. On or about June 30, 2016, KAT accepted payment under the name of the corporate shell company ?Capital Steel Construction? from a US. advertiser that Wire?transferred approximately $133,300 from a US. bank account to a Latvian bank account held in the name of Capital Steel Construction. X. On or about July 1, 2016, as part of the undercover operation, the IRS Wire-transferred approximately $1,000 from a location in Chicago to the Glomeratus bank in Estonia to purchase additional advertising on KAT. All in violation of Title 18, United States Code, Section 371. 13 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 14 of 23 PageID #:77 COUNT TWO The SPECIAL JUNE 2015 GRAND JURY further charges: 1. Paragraph 1 of Count 1 is incorporated here. 2. On or about September 1'7, 2013, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, and OLEKSAN DR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pie,? defendants herein, willfully, and for purposes of commercial advantage and private ?nancial gain, infringed a copyright by distributing a work being prepared for commercial distribution in the United States, namely, the copyrighted motion picture ?The Butler,? by making it available on a computer network accessible to members of the public, when defendants knew and should have known that the work was intended for commercial distribution; In violation of Title 17, United States Code, Section 506(a)(1)(C) and Title 18, United States Code, Sections 2319(d)(2) and 2. 14 Case: Document 9 Filed: 08/23/16 Page 15 of 23 PageID #:78 COUNTS THREE THROUGH TWELVE The SPECIAL JUNE 2015 GRAND RY further charges: 1. Paragraph 1 of Count 1 is incorporated here. 2. On or about the dates listed below, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? and OLEKSANDR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pio,? defendants herein, willfully, and for purposes of commercial advantage and private commercial distribution in the United; States, by making it available on a computer I 1 ?nancial gain, infringed a copyright by distributing a work being prepared for 1 network accessible to members of the public, when defendants knew and should have I known that the work was intended for commercial distribution, as set forth below: Count Date Copyrighted Work 3 June 24, 2016 Batman Superman: Dawn of Justice 4 June 24, 2016 Deadpool 5 June 24, 2016 X?Men Apocalypse 6 June 27, 2016 Captain America: Civil War 7 June 28, 2016 Teenage Mutant Ninja Turtles: Out of the Shadows 8 9 June 30, 2016 Central Intelligence June 30, 2016 Warcraft 10 June 30, 2016 Now You See Me 2 11 June 30, 2016 Jungle Book 12 July 7, 2016 Warcraft i In violation of Title 17, United States Code, Section 506(a)(1)(C) and Title 18, United States Code, Sections 2319(d)(2) and 2. 15 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 16 of 23 PageID #:79 COUNT THIRTEEN The SPECIAL JUNE 2015 GRAND JURY further charges: 1. Paragraph 1 of Count 1 is incorporated here 2. For the 180 days leading up to and including July 8, 2016, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? and OLEKSAN DR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pio,? defendants herein, willfully, and for purposes of commercial advantage and private ?nancial gain, infringed copyrights in certain motion pictures, television programs, music recordings, electronic books, video games, and other computer software, by reproducing and distributing over the Internet, at least ten copies and phonorecords of one or more copyrighted works which had a total retail value of more than $2,500; In violation of Title 1'7, United States Code, Section 506(a)(1)(A) and Title 18, United States Code, Sections 2319(b)(1) and 2. 16 Case: Document 9 Filed: 08/23/16 Page 17 of 23 PageID #:80 COUNT FOURTEEN The SPECIAL JUNE 2015 GRAND JURY further charges: 1. Paragraph 1 of Count 1 is incorporated here. 2. From at leaSt as early as in or about November 2008, to on or about July 20, 2016, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? aka ?Eugene Kutsenko? and ?chill,? and OLEKSANDR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pio,? defendants herein, together with others known and unknown to the Grand Jury, conspired to: a. knowingly transmit and transfer funds from a place in the United States to a place outside the United States with the intent to promote the carrying on of specified unlawful activity, namely, criminal copyright infringement, in Violation of Title 18, United States Code, Section 1956(a)(2)(A); and b. knowingly transmit and transfer funds from a place in the United States to a place outside the United States, knowing that the funds involved in the transmission and transfer represented the proceeds of some form of unlawful activity, and knowing that the transmission and transfer was designed in whole or in part to conceal and disguise the nature, the location, the source, the ownership, and the control of the proceeds of speci?ed unlawful activity, namely, criminal copyright infringement, in violation of Title 18, United States Code, Section 3. It was part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others coordinated and directed and caused 17 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 18 of 23 PageID #:81 others to coordinate and direct the transfer of funds derived from criminal copyright infringement from the United States to a place outside of the United States and did so in a manner designed to conceal the nature, location, source, ownership, and control of the funds and with the intent to promote criminal copyright infringement. 4. It was further part of the conSpiracy that defendants Artern Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others generated millions of dollars from the copyright-infringing material that KAT made available by soliciting and causing others to solicit extensive online advertising, sales of visitor traf?c, and KAT user donations. 5. It was further part of the conspiracy that defendants Artem Vaulin, levgen Kutsenko, Oleksandr Radostin, and others generated signi?cant funds from the copyright?infringing material available on the direct download websites by soliciting and causing others to solicit fees from users of the direct download websites, online advertising, and website traffic sales. 6. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others formed and operated, and caused others to form and operate, a collection of corporate shell companies to receive funds derived from KAT, torcachehet, and the direct download websites, thereby concealing and disguising the nature, location, source, ownership, and control of the funds, and facilitating the transfer of the funds derived from criminal copyright infringement to the defendants and others, with the intent to promote criminal copyright infringement. 18 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 19 of 23 PageID #:82 It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others, in order to hide the illicit proceeds generated from the conspiracy, instructed advertisers to deliver funds to bank accounts in the name of various corporate shell companies controlled by KAT and to not mention KAT in connection with the payment of funds. 8. It was further part of the conspiracy that defendants Artem Vaulin, Ievgen Kutsenko, Oleksandr Radostin, and others concealed, misrepresented, and hid and caused to be concealed, misrepresented, and hidden, the existence and purpose of the conspiracy and the acts done in furtherance of it. In Violation of Title 18, United States Code, Sections 1956(h) and 2. 19 Case: 1:16-cr-00438 Document 9 Filed: 08/23/16 Page 20 of 23 PageID #:83 COUNT FIFTEEN The SPECIAL JUNE 2015 GRAND JURY further charges: 1. Paragraph 1 of Count 1 is incorporated here. 2. On or about March 9, 2016, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? and OLEKSANDR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pio,? defendants herein, knowingly transmitted and transferred funds from a place in the United States to a place outside the United States, namely, approximately $1,500 in funds from Chicago, Illinois, to a bank account in Latvia held in the name GA Star Trading, knowing that the funds involved in the transmission and. transfer represented the proceeds of some form of unlawful activity, and knowing that the transmission and transfer was designed in Whole or in part to conceal and disguise the nature, the location, the source, and the ownership, and the control of the In Violation of Title 18, United States Code, Sections 1956(a)(2)(B)(i) and 2. proceeds of specified unlawful activity, namely, criminal copyright infringement; 20 Case: Document 9 Filed: 08/23/16 Page 21 of 23 PageID #:84 COUNT SIXTEEN The SPECIAL JUNE 2015 GRAN URY further charges: 1. Paragraph 1 of Count 1 is incorporated here. 2. On or about July 1, 2016, in the Northern District of Illinois, Eastern Division, and elsewhere, ARTEM VAULIN, aka ?tirm,? and OLEKSAN DR RADOSTIN, aka ?Alex Radostin,? ?pioneer,? and ?pie,? defendants herein, knowingly transmitted and transferred funds from a place in the United States to a place outside the United States, namely, approximately $1,000 in funds from Chicago, Illinois, to a bank account in Estonia held in the name Glomeratus, With the intent to promote the carrying on of specified unlawful activity, namely, criminal copyright infringement; In violation of Title 18, United States Code, Sections 1956(a)(2)(A) and 2. 21 Case: Document 9 Filed: 08/23/16 Page 22 of 23 PageID #:85 FORFEITURE ALLEGATION The SPECIAL JUNE 2015 GRAND JURY alleges: 1. Upon conviction of an offense in violation of Title 18, United States Code, Section 371, as set forth in this Indictment, defendants shall forfeit to the United States of America any property that constitutes] and is derived from proceeds traceable to the offense, as provided in Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c). 2. Pursuant to Title 18, United States Code, Section 2323, upon conviction of the offense in violation of Title 18, United States Code, Section 2319, as set forth in this Indictment, defendants shall forfeit to the United States of America: a. any article, the making for traf?cking of which is, prohibited under Title 18, United States Code, Section 2319 or Title 17, United States Code, Section 506; b. any property used, or intended to be used, in any manner or part to commit or facilitate the commission of a violation of Title 18, United States Code, Section 2319 or Title 17, United States Code, Section 506; and c. any property constituting or derived from any proceeds obtained directly or indirectly as the result of the commission of a violation Title 18, United States Code, Section 2319 or Title 17, United States Code, Section 506. 3. Upon conviction of an offense in violation of Title 18, United States Code, Sections 1956(h), 1956(a)(2)(A), and 1956(a)(2)(B), as set forth in this Indictment, defendants shall forfeit to the United States of America, any property involved in 22 Case: Document 9 Filed: 08/23/16 Page 23 of 23 PageID #:86 such offense, and any property traceable to such property, as provided in Title 18, United States Code, Sections 981(a)(1)(A) and 982(a)(1). 4. If any of the property described above, as a result of any act or omission by a defendant: cannot be located upon the exercise of due diligence; has been transferred or sold to, or deposited with, a third party; has been placed beyond the jurisdiction of the Court; has been substantially diminished in value; or has been commingled With other property which cannot be divided Without dif?culty, the United States of America shall be entitled to forfeiture of substitute property, as provided in Title 21, United States Code, Section 853(p). A TRUE BILL: FOREPERSON UNITED STATES ATTORNEY 23