From at least in or about 2007 up to and including in or about July 2015, Shalon, Orenstein and their co-conspirators operated unlawful internet casinos in the United States and elsewhere through hundreds of employees in multiple countries. In the United States, the defendants knowingly operated at least 12 unlawful internet casinos (the Casino Companies) which, through their websites, offered real-money casino gambling in violation of federal law and the laws of numerous states, including New York state. Through the Casino Companies, Shalon, Orenstein and their co-conspirators generated hundreds of millions of dollars in unlawful income.
In furtherance of his unlawful internet gambling schemes, Shalon and his co-conspirators engaged in massive hacks and cyberattacks against other internet gambling businesses to steal customer information, secretly review executives’ emails and cripple rival businesses. For example, Shalon orchestrated network intrusions of Victims-10 and -11, companies that provided operating software to Shalon’s internet casinos. In doing so, Shalon sought to, and did, secretly obtain access to the email accounts of senior executives at both companies to ensure that the companies’ work with Shalon’s competitors did not compromise the success of Shalon’s unlawful internet gambling businesses.