Russian accused in major computer scam

Associated Press

SEATTLE — Federal prosecutors in Seattle have accused a Russian man of running a computer-hacking scheme that defrauded dozens of Internet service providers and other businesses.

Vasily Gorshkov, 25, faces a maximum of 100 years in prison if convicted on 20 counts of wire fraud and various other computer crimes.

In opening statements Wednesday at Gorshkov’s U.S. District Court trial, U.S. Attorney Floyd Short told jurors Gorshkov and a business partner hacked into business e-mail systems, then contacted the companies posing as security consultants.

Gorshkov’s business partner, Alexey Ivanov, 20, is awaiting trial on similar charges in Connecticut.

Prosecutors say more than 40 U.S. businesses in 10 states were targeted in the hacking scheme, carried out from Chelyabinsk, Russia.

The men called themselves "The Expert Group of Protection Against Hackers," Short said, and offered to fix the problems for fees as high as $5,000.

Speakeasy Network, a Seattle-based Internet service provider, was one of the targets, Short said.

After hacking into Speakeasy’s system, the two followed through with a threat to release customer credit-card numbers and other confidential information over the Internet, Shore said.

Gorshkov’s lawyer, Kenneth Kanev of Seattle, admitted that the crimes were committed but pinned the blame on Ivanov, whom he said was more computer-savvy.

The FBI set up a sting last year, posing as officials from an Internet company and inviting the pair to Seattle to consult on security matters.

The men were arrested after a Nov. 10 meeting, in which FBI officials say they admitted to employing a team of hackers.