PHILLIP A. TALBERT United States Attorney GRANT B. RABENN PAUL A. HEMESATH Assistant United States Attorneys 2500 Tulare Street, Suite 4401 Fresno, CA 93721 Telephone: (559) 497-4000 Era .. . Facsimile: (559) 497-4099 . Mair, ali?gbg}?? . .. .. 3?3 KENNETH A. BLANCO Acting Assistant Attorney General Criminal Division, United States Justice Department - LOUISA MARION Trial Attorney Computer Crime and Intellectual Property Section Washington DC 20530 Telephone: (202) 514? 1026 Attorneys for Plaintiff United States of America IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA . 1 4 4 L30 3K0 UNITED STATES OF AMERICA, CASE NO. 7 CR 0 - Plaintiff, VIOLATIONS: 18 U.S.C. 1962(d) Conspiracy to Engage in a V. Racketeer In?uenced Corrupt Organization; . 21 U. S. C. 846 and 84l(a)(1), ALEXANDRE CAZES, - 841(11), and 843(b) Narcotics Conspiracy; 21 U.S.C . aka . 841(a)(1), 846aka Distribution of a Controlled Substance, Attempt, and Aiding and Abetting (5 Counts); 21 U.S.C. Defendant. 841(a)(1), 846, and 18 U.S.C. 2 Distribution of a Controlled Substance, Attempt, and Aiding and Abetting, 18 U. S. C. 1028(f) Conspiracy to Commit Identity Theft and Fraud, 18 U. C. 1028(a)(2), and 18 U.S.C. 2 Unlawful Transfer of a False Identification Document, Attempt, and Aiding and Abetting (4 Counts); 18 U.S.C. 1029(b)(2) Conspiracy to Commit Access Device Fraud; 18 U.S.C. 1029(a)(4), and 18 U.S.C. 2 Trafficking in Device Making Equipment, Attempt, and Aiding and Ab etting; 18 U. S. C. 1956(h) Money Laundering Conspiracy, and 18 U. S. C. 982(a)(1), and 21 U. S. C. 853(a)? Criminal Forfeiture INDICTMENT IEDIQIMEEI I. GENERAL ALLEGATIONS . At all relevant times herein: 1. Defendant ALEXANDRE CAZES, aka aka is a Canadian . citizen by birth, and obtained citizenship from Antigua and Barbuda in or around February 2017. He has resided in or around Quebec, Canada, and Bangkok, Thailand. 2. In or around July 2014, ALEXAN DRE CAZES, aka aka with- other persons, known and unknown to the. Grand Jury, created AlphaBay (also referred to as the ?AlphaBay Market?), a dark-web marketplace designed to enable users to buy and sell illegal goods, including controlled substances, stolen and fraudulent identi?cation documents and access devices, counterfeit goods, malware and other computer hacking tools, ?rearms, and toxic chemicals. The site also allowed users to buy and sell illegal services, such as money laundering. AlphaBay was used by thousands of vendors to distribute controlled substances and other illegal goods and services to buyers throughout the-world, and to launder hundreds of millions of dollars deriving from these illegal transactions. AlphaBay also provided a private, internal messaging service through which staff, vendors, and buyers could communicate, as well as an associated web forum called the ?AlphaBay Market Forum.? A 3. AlphaBay existed on the dark web, meaning it was accessible only through The Onion Router?C?Tor?) network, which'anonymized the Internet Protocol addresses of its underlying servers. The use of Tor also made it dif?cult to identify the true physical locations of the website?s administrators, moderators, and users. AlphaB ay required its users to transact in digital currencies, including Bitcoin, Monero, and Ethereum. The site did not allow for transactions in of?cial, government-backed currencies. 4. Digital currencies are electronically sourced units of value that exist on the Internet and are not stored in a physical form. They are not issued by any government, but instead are generated and controlled through computer software operating on decentralized peer-to-peer networks. Users of digital currencies send units of value to and from ?addresses,? which are unique strings of numbers and letters functioning like a public account number. Digital currency transactions are recorded on a publicly INDICTMENT available, distributed ledger, often referred to as a ?blockchain.? Because digital currencies are transferred peer?to?peer, users can avoid traditional, regulated ?nancial institutions, which collect information about their customers and maintain anti?money laundering and fraud programs. AlphaB ay and its users were able to bypass the traditional ?nancial systems by only accepting digital currencies. 5. AlphaBay required its users, both vendors and buyers, to execute transactions through digital currency addresses hosted and ultimately controlled by the site. Before purchasing a good or service, a buyer would load funds to an AlphaBay?controlled digital currency address. Once loaded, AlphaBay credited the user?s account by that amount. A buyer could initiate a purchase by selecting an illegal good or service from a vendor and sending funds from their AlphaBay user account to an escrow account controlled and maintained by AlphaBay. Upon receipt of an illegalgood or service, the buyer would notify AlphaB ay that the transaction was completed. AlphaBay would then release the funds from the escrow account to the vendor?s AlphaB ay account. From that point, a vendor could direct AlphaBay to transfer the ill? gotten funds to digital currency addresses outside of the AlphaB ay platform and under the vendor?s control. Buyers could transfer funds from their AlphaBay accounts in the same manner. For transactions leaving the site, AlphaB ay provided ?tumbling? and ?mixing? services to attempt to obscure the historical trail of digital currency associated with the site and its users. AlphaBay also advertised other external mixing and tumbling services to its users. 6. AlphaBay?s user interface was configured like a conventional e-commerce website. Users could sign up for free and provide a screen name and password of their choosing. The site encouraged users to not include any information in their pro?le that could reveal their true identities. AlphaBay provided a search tool allowing users to choose the type of illegal good or service they wanted to purchase. Users could also search by price ranges, popularity of items, vendors, origin or shipping country, and payment types. Further, AlphaBay?s homepage allowed users to browse categories of illegal goods, with categories including: fraud, drugs and chemicals, counterfeit items, weapons, carded items, stolen credit card numbers and other access devices, services, software and malware. 7. To become a vendor, a user was required to send a refundable vendor bond to the site. AlphaBay allowed for users to leave ?positive,? ?neutral,? and ?negative? feedback about vendors, INDICTMENT which other users could use in choosing which vendors they would buy from. If a vendor or buyer disputed a transaction, AlphaBay provided dispute settlement services, and could permanently block vendors or buyers from carrying out future transactions on the site. To sell illegal goods or services on AlphaB ay, vendors could simply create listings on the site for buyers to see and then transact with buyers, as described above. 8. As agreed to by all vendors, AlphaBay took a percentage of the purchase price as a commission on the illegal transactions conducted through its website. ALEXANDRE CAZES, aka aka and other operators and employees of the site, controlled and pro?ted from those commissions, which were worth at least tens of millions of dollars. THE ENTERPRISE 9. Defendant ALEXANDRE CAZES, aka aka and others known and unknown to the Grand Jury, were members and associates of a criminal organization, hereafter, the whose members engaged in acts of: drug traf?cking; traf?cking in counterfeit and stolen identification documents, counterfeit goods, unauthorized access devices, device? making equipment, and malware and other computer hacking tools illegal ?rearms distribution; and money laundering, and whose members interfered with interstate and foreign commerce through acts of drug traf?cking; traf?cking in counterfeit and stolen identi?cation documents, counterfeit goods, unauthorized access devices, and device?making equipment, and malware and other computer hacking tools; illegal ?rearms distributions; and money laundering. Members and associates of the ALPHABAY ORGANIZATION operated throughout the world, including in Bangkok, Thailand, and in the Counties of Fresno, Merced, ?and -within the State and Eastern District of California. 10. The ALPHABAY ORGANIZATION, including its leadership, members, and associates, constituted an ?enterprise,? as de?ned by Title 18, United States Code, Section 1961(4), that is, a group of individuals associated in fact, although not a legal entity. The enterprise constituted an ongoing. organization whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. The enterprise was engaged in, and its activities affected, interstate and foreign commerce. INDICTMENT 43011. 12. PURPOSES OF THE ENTERPRISE The purposes of the enterprise included, but were not limited to, the following: A. to create, maintain, and control a dark?web marketplace for traf?cking in narcotics, counterfeit and stolen identi?cation documents, unauthorized access devices, counterfeit goods, device?making equipment, malware and other computer hacking tools, illegal ?rearms, and other illegal goods and services, and to launder the proceeds of such conduct; to enrich the leaders, members, and associates of the enterprise by takinga commission from each illegal transaction conducted through the dark-web marketplace created, maintained, and controlled by the enterprise; to promote and enhance the reputation and standing of the enterprise and its leaders, members, and associates; to preserve and protect the enterprise?s pro?ts and client base through acts of money laundering; and to protect the enterprise and its leaders, members, and associates from detection, apprehension, and prosecution by law enforcement, and from attacks by enemies, such as hackers and rival dark?web marketplaces. MEANS AND METHODS OF THE ENTERPRISE The means and methods by which defendant ALEXANDRE CAZES, aka aka and other members and associates of the enterprise conducted and participated in the conduct of the affairs of the enterprise included, but were not limited to, the following: IND ICTMENT A. Members and associates of the ALPHABAY ORGANIZATION distributed, and facilitated the distribution of, controlled substances, including marijuana, heroin, cocaine, fentanyl, and methamphetamines, through the AlphaB ay web site. Members and associates of the ALPHABAY ORGANIZATION distributed, and facilitated the distribution of, counterfeit and stolen identi?cation documents, unauthorized access devices, counterfeit goods, device-making equipment, and malware and other computer hacking tools. INDICTMENT Members and associates of the ALPHABAY ORGANIZATION facilitated the provision of illegal services, including money laundering and ?swatting,? bomb threats and false reports to law enforcement. Members and associates of the ALPHABAY ORGANIZATION illegally sold, and facilitated the illegal sale of, ?rearms and ?rearm parts. Members and associates of the ALPHABAY ORGANIZATION laundered money through the AlphaBay website by maintaining and controlling digital currency addresses through which customers paid vendors on the AlphaBay website, and providing mixing and tumbling services for digital currency transactions from the AlphaBay?hosted digital currency addresses to addresses outside of the AlphaBay website. Members and associates of the ALPHABAY ORGANIZATION also laundered money by taking a percentage of all illegal transactions as a commission, and sending those commissions to members and associates of the ALPHABAY ORGANIZATION as salary payments. Further, members and associates of the ALPHABAY ORGANIZATION laundered money by sending their proceeds from administering the AlphaBay website to digital currency exchangers, where the funds were converted into of?cial, ?at currency and spent on personal goods and services. Members and associates of the ALPHABAY ORGANIZATION used various means of communication designed to protect the membership?s anonymity and to provide security for the criminal organization from attack by hackers, other criminal organizations, and from law enforcement, including but not limited to: i. An internally hosted messaging service on the AlphaBay website, which was controlled by the ALPHABAY ii. An internally hosted forum called the ?AlphaB ay Market Forum,? which was controlled by the ALPHABAY Private messaging, including through Jabber, an instant messaging and multi?user conferencing technology; iv. ?Pretty Good Privacy? which was required for all vendor communications and encouraged for all other users; v. Proxies, which bounced network traf?c from one computer to another to hide a member?s true originating IP address, including through the Tor network; vi. Multiple contingency Uniform Resource Locators on the Tor network for redundancy in case of seizure by law enforcement or attack by enemies, such as through a distributed denial of service attack; I vii. Virtual Private Networks which are similar to proxies, but with the addition of creating an tunnel; and - Public websites, including Reddit (at G. Members and associates of the ALPHABAY ORGANIZATION used digital currencies, including Bitcoin, to facilitate illegal transactions on the website, to protect the membership ?3 anonymity, and to facilitate the laundering of the membership?s ill?gotten gains. Members and associates of the enterprise also provided mixing and tumbling services for the website?s users, which assisted them in attempting to obscure the historical trail of digital currencies transferred from user accounts on the website to privately held digital currency addresses outside of the site?s purview. I ROLE OF THE DEFENDANT AND CO-CONSPIRATORS 13. Leaders, members, and associates 'of the ALPHABAY ORGANIZATION had de?ned roles in the enterprise. At all times relevant to this indictment, defendant ALEXANDRE CAZES, aka aka (herein and other persons, known and unknown to the Grand Jury, participated in the operation and management of the enterprise as follows: Administrator: 14. Defendant CAZES created and founded the ALPHABAY ORGANIZATION and its online platform, which included the AlphaB ay Market and the AlphaB ay Market Forum. CAZES began INDICTMENT AWN creating the AlphaBay online platform in or around July 2014, and, with other persons, known and. unknown to the Grand Jury, publicly launched the site in or around December 2014. CAZES served as the leader of the managers and operators of the criminal organization, who, collectively, controlled the destiny of the enterprise. . 15. CAZES had ultimate control of the ALPI-IABAY ORGANIZATION, including its membership. CAZES had ?nal authority to delete the accounts of moderators, vendors, and buyers on the website and forum. CAZES also had final authority in settling disputes among moderators, vendors, and other?users? of the website. CAZES was ultimately responsible for the website?s operational security and technology updates. CAZES controlled the ALPHABAY earnings, which derived primarily from a commission it made on every transaction occurring through the website. He also had ?nal control over salary payments to the staff members in the ALPHABAY ORGANIZATION, which were made in digital currencies, such as Bitcoin. Security Administrator: 16. The ALPHABAY ORGANIZATION employed a ?security administrator? responsible for administering the AlphaBay online platform with CAZES. The security administrator had high?level access to the website and, with CAZES, was responsible for the website?s operational security and technology updates. The security administrator also had partial control of moderator, vendor, and other users? accounts on the AlphaBay online platform. Moderators: 17. The ALPHABAY ORGANIZATION employed moderators to review and moderate disputes among vendors and buyers on the website. Moderators had access to portions of the AlphaBay platform that were not available to the general public. Moderators had the authority to refund payments from buyers on the website, to restore a user?s access to the site, to engage in staff?only discussions and meetings, and to View the amount of digital currency available to other members of the ALPHABAY ORGANIZATION. Moderators were paid based in part on the amount of work they performed for the ALPHABAY ORGANIZATION. INDICTMENT Scam Watch: 18. The ALPHABAY ORGANIZATION employed ?scam watchers? responsible for monitoring and .quashing phishing attempts and other scams being carried out on the AlphaBay online platform. Public Relations Manager: 19. The ALPHABAY ORGANIZATION employed a public relations manager responsible for outreach to the website?s users and the broader dark?web community. The public relations manager posted updates about the website on the internally hosted AlphaB ay Market Forum, and on public websites, such as Reddit. The public relations manager also assisted the website?s users with issues they had with the website, such as dispute settlement. Vendors: 20. The ALPHABAY ORGANIZATION facilitated the sale of illegal goods and services on its website. Those sales were made by vendors. Vendors were users who had paid a refundable vendor bond and were thus given permission to create listings for the sale of illegal goods and services. Vendors were assigned ?trust levels? by the AlphaBay website based on several factors, including the amount of goods sold and reviews from customers. As alleged above, vendors received payments from customers through digital currency addresses hosted by the AlphaBay website. A percentage of all payments were kept by the ALPHABAY ORGANIZATION. Further, vendors communicated with their customers through an internal messaging service hosted by the AlphaBay website. In addition, vendors used AlphaBay moderators and other employees to assist in settling disputes with customers. A COUNT ONE: [1 8 U.S.C. 1962(d) Conspiracy to Engage in a Racketeer In?uenced Corrupt Organization] The Grand Jury charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 21. Paragraphs 1 through 20 are incorporated by reference as' fully set forth herein. INDICTMENT 22. Beginning no later than in or around July 2014 and continuing to in or around June 2017, in the Counties of Fresno, Merced, ?in the State and Eastern District of California and elsewhere, defendant ALEXANDRE CAZES, aka aka with other persons, known and unknown to the Grand Jury, being persons employed by and associated with the ALPHABAY ORGANIZATION, an enterprise, which engaged in, and the activities of which affected, interstate and foreign commerce, knowingly and intentionally conspired to violate Title 18, United States Code, Section 1962(0), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs of that enterprise through a pattern of racketeering activity, as that term is de?ned in Title 18, United States Code, Sections 1961(1) and (5), consisting of multiple acts indictable under 18 U.S.C. 1028 (fraud in connection with identification documents), 18 U.S.C. 1029 (fraud in connection with access devices), and 18 USC. 51956, 1957 (money laundering); and multiple offenses involving narcotics trafficking, in violation of 21 U.S.C. 841, 843, and 846 (drug trafficking, use of a communication facility, and conspiracy). 23. It was a part of the conspiracy thatdefendant ALEXANDRE CAZES, aka aka agreed that at least two acts of racketeering activity would be committed by a conspirator in the conduct of the affairs of the enterprise. - Allin violation of Title 18, United States Code, Section 1962(d). COUNT TWO: [21 U.S.C. 846 and 841(a)(1), 841(h), and 843(b) Narcotics Conspiracy] The Grand Jury charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 24. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 25. Beginning no later than in or around July 2014 and continuing to in or around June 2017, INDICTMENT 10 INDICTMENT in the Counties of Fresno, Merced, ?within the State and Eastern District of California, and elsewhere, ALEXANDRE CAZES, aka aka did knowingly and intentionally conspire with other persons, known and unknown to the Grand Jury, to Violate, Title 21, United States Code, Sections 841(a)(1), 841(h), and 843(b), all in Violation of Title 21, United States Code, Section 846. 26. It was a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did distribute controlled substances, including but not limited to: marijuana, heroin, cocaine, fentanyl, and methamphetamines, on AlphaB ay, a dark-web marketplace, and did aid and abet such distribution, in Violation of Title 21, United States Code, Section 841(a)(1), and and Title 18, United States Code, Section 2. 27. It was further a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did deliver, distribute, and diSpense controlled substances, including but not limited to: marijuana, heroin, cocaine, fentanyl, and methamphetamines, by means of the Internet, including through AlphaBay, a dark?web marketplace, in a manner not authorized by law, and did aid and abet such conduct, in Violation of Title 21, United States Code, Section 841(h), and Title 18, United States Code, A Section 2. 28. It was further a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did knowingly and intentionally use a communication facility, including AlphaB ay, a dark?web marketplace, in committing and in causing and facilitating the commission of acts constituting a felony under Title 21, United States Code, Sections 841 and 846, and did aid and abet such conduct, in Violation of Title 21, United States Code, Section 843 and Title 18, United States Code, Section 2. 11 29. The controlled substances ALEXANDRE CAZES, aka aka conspired to distribute included, among others: at least one kilogram of mixtures and substances containing a detectable amount of heroin, a Schedule 1 controlled substance; at least 50 grams of methamphetamine (actual), a Schedule 11 controlled substance; and at least 1,000 kilograms of marijuana, a Schedule 1 controlled substance. All in Violation of Title 21, United State Code, Section 846. COUNT THREE: [21 U.S.C. 841(a)(1), and 846, and 18 U.S.C. 2 Distribution of a Controlled Substance, Attempt, and Aidng and Abetting] The GrandJury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 30. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 31. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Merced, within the State and Eastern District of California, and elsewhere, through AlphaB ay, a dark?web marketplace, did, and attempted to, knowingly and intentionally distribute, and aid and abet the distribution of, marijuana, a Schedule 1 controlled substance. AlphaBay AlphaBay JLA Controlled Purchase Mailing Apnx. Mailing Locations Vendor Bu er Substance a Date A Date c, an Merced, California to .. CC4L undercover agent 12/29/2015 12/3 1/2015 Buffalo, New York Marijuana Allin Violation of Title 21, United States Code, Sections 841(a)(1), and 846, and Title 18, United States Code, Section 2. INDICTMENT 12 43-COUNT FOUR: [21 U.S.C. 84l(a)(1), and 846, and 18 U.S.C. 2 Distribution of a Controlled Substance, Attempt, and Aiding and Abetting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 32. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 33. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Fresno, within the State and Eastern District of California, and elsewhere, through AlphaBay, a dark?web marketplace, did, and attempted to, knowingly and intentionally distribute, and aid and abet the distribution of, heroin, a Schedule 1 controlled substance. Appx. Appx. . . AlphaBay . . Appx. Controlled Vendor AlphaBay Buyer Purchase Malling Locations ?Substance Date Date - an 05/16/2016 05/20/2016 Broom? Net Yoik Heroin undercover agent to Fresno, California All in Violation of Title 21, United States Code, Sections 84l(a)(l), and 846, and Title 18, United States Code, Section 2. COUNT-FIVE: [21 U.S.C. 84l(a)(l), and 846, and 18 U.S.C. 2 Distribution of a Controlled Substance, Attempt, and Aiding and Ab etting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 34. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 35. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Fresno, within the State and Eastern District of California, and elsewhere, through AlphaB ay, a dark?web marketplace, did, and attempted to, knowingly and INDICTMENT 1 3 intentionally distribute, and aid and abet the distribution of, heroin, a Schedule I controlled substance. AlphaBav AlphaBay Appx. Mailing Controlled Vendor Bu er mg Locations Substance Date Date - an - undercover 05/24/2016 05/27/2016 Broom? NEW Yolk Heroin agent to Fresno, Californ1a Allin Violation of Title 21, United States Code, Sections 84l(a)(l), and 846, and Title 18, United States Code, Section 2. COUNT SIX: [21 U. S. 84l(a)(1), and 846Distribution ofa Controlled Substance, Attempt, and Aiding and Abetting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 36. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 37. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Fresno, within the State and Eastern District of California, and elsewhere, through AlphaBay, a dark?web marketplace, did, and attempted to, knowingly and intentionally distribute, and aid and abet the distribution of, heroin, a Schedule I controlled substance, and fentanyl, a Schedule II controlled substance. AlphaBaV AlphaBaV ARE Appx. Mailing Controlled dor Bu er Mg I Locations Substance . ?El-1? Date Date . an . . . . undercover 10/20/2016 10/25/2016 88?? Framsco? 9311100?? and agent to Fresno, Californla entanyl All in Violation of Title 21, United States Code, Sections 84l(a)(l), and 846, and Title 18, United States Code, Section 2. INDICTMENT 1?4 COUNT SEVEN: [21 U.S.C. 841(a)(1), and 846, and 18 U.S.C. 2 a Distribution of a Controlled Substance, Attempt, and Aiding and Abetting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 38. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. _39. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Fresno, within the State and Eastern District of California, - and elsewhere, through AlphaBay, a dark-web marketplace, did, and attempted to, knowingly and intentionally distribute, and aid and abet the distribution of, marijuana, a Schedule I controlled substance. Appx. Appx. . . AlphaBay . . Appx. Controlled Vendor AlphaBay Buyer PHSZIESSB Locations Substance -an Los An eles, California .. i - .201 6 -2016 130* California Mari] uana undercover agent Allin Violation of Title 21, United States Code, Sections 841(a)(1), and 846, and Title 18, United States Code, Section 2. COUNT EIGHT: [21 U.S.C. 841(a)(l), and 846, and 18 U.S.C. 2 Distribution of a Controlled Substance, Attempt, and Aiding and Abetting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 40. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 41. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of Fresno, within the State and Eastern District of California, and elsewhere, through AlphaBay, a dark-web marketplace, did, and attempted to, knowingly and INDICTMENT 15 intentionally distribute, and aid and abet the distribution of at least 50 grams of methamphetamine (actual), a Schedule II controlled substance. AEQX. Appx. . . I I . AlphaBaY AlphaBaV Purchase Malling Marlln Controlled Substance Vendor Buyer Date Date Locatlons -an . Methamphetamine - undercover -2017 -2017 gz?g?z (actual) (more than 50 agent grams) All in violation of Title 21, United States Code, Sections 841(a)(1), and 846, and Title 18, United States Code, Section 2. COUNT NINE: [18 U.S.C. 1028(f) - Conspiracy to Commit Identity Theft and Fraud Related to Identi?cation Documents] The Grand Jury charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 42.1 Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 43. Beginning in or around July 2014 and continuing to in or around June 2017, in the County of - within the State and Eastern District of California, and elsewhere, ALEXANDRE CAZES, aka aka did knowingly and intentionally conspire with other persons, known and unknown to the Grand Jury, to Violate Title 18, United States Code, Sections 1028(a)(2) and Title 18, United States Code, Section 2, all in Violation of Title 18, United States Code, Section 1 028 44. It was a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did knowingly transfer false identification documents knowing that such documents were produced without lawful authority, and the transfer of such identification documents was in and affected interstate and foreign commerce, and did aid and abet such transfers, in ViolatiOn of Title 18, United States Code, INDICTMENT 1 6 4th Section 1028(a)(2), and and Title 18, United States Code, Section 2. 45. In furtherance of the conspiracy and to effectuate the objects and purposes of the conspiracy, the following overt acts, in addition to others, were committed in the Eastern District of California, and elsewhere: a. In or around December 2014, the defendant, with others, known and unknown to the Grand Jury, publicly launched AlphaBay, a dark-web marketplace allowing for and facilitating the sale and transfer of counterfeit and stolen identification documents and authentication features. b. From in or around December 2014 continuing through in or around June 2017, the defendant, with others, known and unknown to the Grand Jury, collected a commission on all sales made through the AlphaBay website. 0. On or about - 2015, AlphaBay vendor -mai1ed a false _State Driver license from in or around to an undercover law enforcement of?cer operating on AlphaBay as user -in or around_ California. d. On or about - 2016, AlphaBay vendor - mailed two false - State Driver licenses from in or-around ?to an undercover law enforcement of?cer operating on AlphaBay as user -in or around -California. c. On or about 2016, AlphaB ay vendor - mailed a false? State Driver license from in or around to an undercover law enforcement of?cer operating on AlphaBay as user - in or around -California. All in violation of Title 18, United States Code, Section 1028(f). l7 INDICTMENT COUNTS TEN THROUGH THIRTEEN: [18 U. S. C. 1028(a)(2Unlawful Transfer of a False Identi?cation Document, Attempt and Aiding and Abetting] The Grand Jury ?nther charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 46. Paragraphs 1 through 20 are incorporated by reference as set forth herein. 47. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of -within the State and Eastern District of California, and elsewhere, through AlphaBay, a dark?web marketplace, did, and attempted to, knowingly transfer false identi?cation documents as de?ned in 18 1028(d)(4), to wit: false -State Driver licenses, as set forth in the table below, knowing that such documents were produced without lawful authority, and the transfers of such identification documents were in and affected interstate and foreign commerce. On or About Document me/ AlphaBay I I I __Count Transfer Date Appx. Malling Locatlons Vendor haBa Bu er false?State - an undercover agent, Ten -2015 Dnver license mai ed from in - California False ?State Eleven -2016 Driver license mailed from - an undercover agent, in -California False -State Twelve -2016 Driver license mailed from in - California False _State . . . . an undercover a ent Driver license mailed from - - - - - an undercover agent, Allin violation of Title 18, United States Code, Section 1028(a)(2), and and Title 18, United States Code, Section 2. INDICTMENT 1 8 COUNT FOURTEEN: [18 U.S.C. 1029(b)(2) Conspiracy to Commit Access Device Fraud] The Grand Jury charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 48. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 49. Beginning in or around July 2014 and continuing to in or around June 2017, in the County of-within the State and Eastern District of California, and elsewhere, ALEXANDRE CAZES, aka aka did knowingly and intentionally conspire with other persons, known and unknown to the Grand Jury, to Violate Title 18, United States Code, Sections 1029(a)(2), and Title 18, United States Code, Section 2. I 50. It was a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did knowingly and with the intent to defraud, traf?c in, have control and custody over, and possess device-making equipment, as defined in Title 18, United States Code, Section 1029(e)(6), affecting interstate and foreign commerce, and did aid and abet such conduct, in violation of Title 18, United States Code, Section 1029(a)(4) and and Title 18, United States Code, Section 2. '51. It was further a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, would and did knowingly and with the intent to defraud, traf?c in one or more unauthorized access devices, as defined in Title 18, United States Code, Section 1029(e)(3), during any one-year period, and by such conduct obtained anything of value aggregating to $1,000 or more during that period, affecting interstate and foreign commerce, and did aid and abet such conduct, in violation of Title 18, United States Code, Section l029(a)(2) and and Title 18, United States Code, Section 2. 52. In furtherance of the conspiracy and to effectuate the objects and purposes of the INDICTMENT 19 4sconspiracy, the following overt acts, in addition to others, were committed in the Eastern District of California, and elsewhere: a. In or around December 2014, the defendant, with others, known and unknown to the Grand Jury, publicly launched AlphaBay, a dark?web marketplace allowing for and facilitating the sale of device~rnaking equipment and unauthorized access devices. From in or around December 2014 continuing through in or around June 2017, the defendant, with others, known and unknown to the Grand Jury, collected a commission on all sales made through the AlphaBay website. 0. On or about _2015, AlphaBay vendor-mailed a automated teller machine skimming device from in or around to AlphaBay user - an undercover law enforcement agent located in or around -California. Allin violation of Title 18, United States Code, Section 1029(b)(2). COUNT FIFTEEN: [18 U.S.C. 1029(a)(4), and 18 U.S.C. 2 Traf?cking in Device Making Equipment, Attempt, and Aiding and Abetting] The Grand Jury further charges: ALEXANDRE CAZES, aka aka defendant herein, as follows: 53. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 54. On the dates set forth in the table below, the defendant, with other persons, known and unknown to the Grand Jury, in the County of -within the State and Eastern District of California, and elsewhere, through AlphaB ay, a dark?web marketplace, did, and attempted to, knowingly and with the intent to defraud, traf?c in, have control and custody over, and possess device-making equipment, as defined in subsection as set forth in the table below, affecting interstate and foreign commerce, and aided and abetted such conduct. INDICTMENT 20 AlphaBav AlphaBav it? 3" Appx. Mailing Unauthorized Access Purchase Transfer . .v . Vendor Bu er Date Date Locations Dewce -an - ??cO automated teller - -2015 2015 _California machine skimming device Allin violation of Title 18, United States Code, Sections 1029(a)(4), and Title 18, United States Code, Section 2. COUNT SIXTEEN: [l 8 U.S.C. 1956(h) Money Laundering Conspiracy] The Grand Jury charges: . ALEXANDRE CAZES, aka aka defendant herein, as follows: - 55. Paragraphs 1 through 20 are incorporated by reference as fully set forth herein. 56. As described above, AlphaBay, a dark?web marketplace, hosted digital currency addresses for its users, both vendors and buyers, to carry out illegal transactions, including money laundering services. AlphaBay also provided tumbling and mixing services to obscure the historical trail of digital currency associated with the site and its users, some of whom were located in the Eastern District of California. Further, as described above, AlphaBay took a percentage on all illegal transactions occurring through its site as a commission, which went to the defendant and other operators of the site. In addition, ALEXANDRE CAZES, aka aka and co?conspirators, moved their ill-gotten pro?ts throughout. the world, including to and from Thailand. 57. Beginning in or around July 2014 and continuing to in or around June 2017, in the Counties of Fresno, Merced, and -within the State and Eastern District of California, and elsewhere, ALEXANDRE CAZES, aka aka did knowingly and intentionally conspire with other persons, known and unknown to the Grand Jury, to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1957. INDICTMENT '21 was further a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, did knowingly conduct ?nancial transactions affecting interstate and foreign commerce, which involved the proceeds of speci?ed unlawful activities, including: distribution of a controlled substance in violation of Title 21, United States Code, Section 841(a)(1), knowing that the transactions were designed in Iwhole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of such speci?ed unlawful activity, and that while conducting the ?nancial transactions, knew that the property involved in the ?nancial transactions represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(1)(13)(i). 59. It was further a part and object of the conspiracy that ALEXANDRE CAZES, aka aka and other persons, known and unknown to the Grand Jury, did knowingly engage in monetary transactions involving criminally derived property, through a ?nancial institution, affecting interstate and foreign commerce, of a value greater than $10,000, such property having been derived from speci?ed unlawful activities, including: distribution of a controlled substance in violation of Title 21, United States Code, Section 841(a)(1), in violation of Title 18, United States Code, Section 1957. All in violation of Title 18, United States Code, Section 195 FORFEITURE ALLEGATION: [18 U.S.C. 982(a)(1), 1028(b), 1029(c)(1)(C), 1963(a)(1), and 21 U.S.C. 853(a) Criminal Forfeiture] 60. Upon conviction of the offense alleged in Count One of this Indictment, defendant ALEXANDRE CAZES, aka aka shall forfeit to the United States pursuant to Title 18, United States Code, Sections 1963(a)(1), 1963(a)(2), and 1963(a)(3), any interest the defendant acquired or maintained in violation of Title 18, United States Code, Section 1962; any interest in, security of, claim against, or property or contractual right of any kind affording a source of in?uence over any enterprise which the defendant established, operated, controlled, conducted, or participated in INDICTMENT 22 the conduct of, in violation of Title 18, United States Code, Section 1962, as a result of this offense; and any property constituting, or derived from, any proceeds which the defendant obtained, directly or 7 indirectly, from racketeering activity in violation of Title 18, United States Code, Section 1962. 61. Upon conviction of one or more of the offenses alleged in Counts Two through Eight of this Indictment, defendant ALEXANDRE CAZES, aka aka shall forfeit to the United States pursuant to Title 21, United States Code, Section 85 the following property: a. All right, title, and interest in any and all property involved in violations of Title 21, United States Code, Sections 84l(a)(l), 841(h), 843(b), and 846 or a conspiracy to commit such offenses, for which defendant is convicted, and all property traceable to such property, including all real or personal property, which constitutes or is derived from proceeds obtained, directly or indirectly, as a result of such offenses and all property used, or intended to be used, in any manner or part to commit or to facilitate the commission of the offenses. b. A sum of money equal to the total amount of proceeds obtained as a result of the offenses, or conspiracy to commit such offenses, for which defendant is convicted. 62. Upon conviction of one or more of the offenses alleged in Counts Nine through Thirteen of this Indictment, defendant ALEXANDRE CAZES, aka aka shall forfeit to the United States pursuant to Title 18, United States Code, Section any property constituting, or derived from, proceeds the defendant obtained directly or indirectly, as a result of such violations; and pursuant to Title 18, United States Code, Section 1028(b), any personal property used or intended to be used to commit the offenses. 63. Upon conviction of one or more of the offenses alleged in Counts Fourteen and Fifteen of this Indictment, defendant ALEXANDRE CAZES, aka aka shall forfeit to the United States pursuant to Title 18, United States Code, Section any property constituting, or derived from, proceeds the defendant obtained directly or indirectly, as a result of such violations; and pursuant to Title 18, United States Code, Section 1029(c)(l)(C), any personal property used or intended to be used to commit the offenses. 64. Upon conviction of the offense alleged in Count Sixteen of this Indictment, defendant ALEXANDRE CAZES, aka aka shall forfeit to the United States, pursuant to INDICTMENT 23 Title 18, United States Code, Section 982(a)(l), all property, real or personal, involved in such offense, and any property traceable to such property, including but not limited to the following: a. A sum of money equal to the amount of money involved in the offense, for which defendant is convicted. i 65. If any property subject to forfeiture, as a result of the offenses alleged in Counts One through Sixteen of this Indictment, for which defendant is convicted: a. cannot be located upon the exercise of due diligence; b. has been transferred or sold to, or deposited with, a third party; c. has been placed beyond the jurisdiction of the Court; (1. has been substantially diminished in value; or e. has been commingled with other property which cannot be divided without difficulty; it is the intent of the United States, pursuant to Title 18, United States Code, Sections 982(b)(l), and 1963 incorporating Title 21, United States Code, Section 853(1)), to seek forfeiture of any other property of defendant, up to the value of the property subject to forfeiture. A TRUE BILL. Signature on ?le FOREPERS ON PHILLIP A. TALBERT KENNETH A. BLANCO United States Attorney Acting Assistant Attorney General, Criminal Division 7? i JOHN T. JR. KIRK E. Chief, Computer Crime Intellectual Property Assistant United States Attorney Section Chief, Fresno Division BY Low K. MARION Trial Attorney Computer Crime Intellectual Property Section United States Department of Justice INDICTMENT .24