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Announcements       Thread starter PSXHAX       Start date Oct 3, 2020 at 12:46 AM       32      
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Proceeding the release group SPARKS bust early last month that left many siteops and couriers without topsites to distribute warez, 2020 continues to haunt the scene with the United States Department of Justice issuing a press release confirming two Team Xecuter leaders are now in custody facing multiple felony counts after Tom Dilts Jr. of Ohio-based reseller Uberchips.com recently reached a settlement with Nintendo of America, Inc. for 2 million dollars. đź’¸

Below is the official DOJ Press Release (PDF): Two members of notorious videogame p!racy group “Team Xecuter” in custody

Arrested on Indictment from Western District of Washington

Seattle — Two leaders of one of the world’s most notorious videogame p!racy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.

MAX LOUARN, 48, a French national of Avignon, France, YUANNING CHEN, 35, a Chinese national of Shenzhen, China, and GARY BOWSER, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today. The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or backup, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.

“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by backing up video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”

“These defendants lined their pockets by stealing and selling the intellectual property of other video-game developers–even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran. “This conduct doesn’t just harm billion-dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”

“Theft of intellectual property hurts U.S. industry, game developers, and exploits legitimate gaming customers. All of which threaten the legitimacy of the commercial video game industry,” said Eben Roberts, Acting Special Agent in Charge, Homeland Security Investigations, Seattle. “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”

“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecutor was doing,” said Raymond Duda, FBI Special Agent in Charge Seattle. “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”

According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement. Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment. From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.

According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use. However, the overwhelming demand and use for the enterprise’s devices was to play backup videogames. To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of backup videogames for its customers, and several of the enterprise’s devices came preloaded with numerous backup videogames. According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play backup videogames.

In September 2020, LOUARN and BOWSER were arrested abroad in connection with the charges in this case. The United States will seek LOUARN’s extradition to stand trial in the United States. BOWSER was arrested and deported from the Dominican Republic and appeared today in federal court in New Jersey.

Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering.

Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are each punishable by up to 20 years in prison. Conspiracy and trafficking in circumvention devices are each punishable by up to 5 years in prison.

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations.

This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, and Senior Counsel Frank Lin of the Justice Department’s Computer Crime and Intellectual Property Section, with significant and ongoing assistance from the Justice Department’s Office of International Affairs. The Department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.
Team Xecuter Console Hacking Group Leaders Arrested, DOJ Press Release.jpg
 

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:arrow: Update: From Justice.gov: Public voice and principal salesperson for notorious videogame p!racy group sentenced to 3+ years in prison for conspiracy

High Level Manager served as link between hackers and customer base

Seattle – The public face of a notorious video game backups group was sentenced today to 40 months in prison for two federal felonies, announced U.S. Attorney Nick Brown. Gary Bowser, 52, a Canadian national of Santo Domingo, Dominican Republic, pleaded guilty in October 2021 to Conspiracy to Circumvent Technological Measures and to Traffic in Circumvention Devices, and Trafficking in Circumvention Devices. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, “These are serious criminal offenses with real victims and harm to the community.”

“This p!racy scheme is estimated to have caused more than $65 million in losses to video game companies,” said U.S. Attorney Nick Brown. “But the damage goes beyond these businesses, harming video game developers and the small, creative studios whose products and hard work is essentially stolen when games are p!rated.”

Bowser was a prominent leader of the criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or backup, copies of videogames. The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.

According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world. These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. Bowser’s role in the conspiracy was to administer the websites that communicated with customers offering devices for sale.

As part of Team Xecuter, Bowser controlled websites that marketed the group’s products, announced new information about the products, and answered customer questions about the products. Bowser helped create and support online libraries of backup videogames for its customers, and several of the enterprise’s devices came preloaded with backup videogames. Even as game console companies announced new security features, Team Xecuter would roll out new devices designed to bypass such security.

In the sentencing memo, prosecutors quoted from a victim impact statement that said, “When video games are illegally copied and when circumvention devices become readily available, the video game industry—and the broader economy—experience a negative ripple effect.... This leads, at a minimum, to fewer incentives to create, and a less vibrant game scene.”

“This is not a victimless crime. The leaders of this multimillion-dollar scheme are responsible for diverting money from creative professionals who have worked hard to provide unique products and experiences,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI, along with our law enforcement and private sector partners, will continue to pursue those who prove to be enemies of innovation and global commerce.”

“As the voice and public face of these sophisticated cybercriminals for years, Mr. Bowser bears responsibility for stealing millions of dollars in profit and victim losses from the intellectual property of others,” said Donald M. Voiret, Special Agent in Charge of the Seattle Field Office. “He also wasted the efforts of legitimate companies as they attempted to build protections for their products.”

In September 2020, Bowser was arrested abroad and was deported from the Dominican Republic. Bowser has been in federal custody since his arrest. As part of his plea agreement, Bowser has agreed to pay $4.5 million in restitution to Nintendo of America.

Max Louarn, 49, a French national of Avignon, France, Yuanning Chen, 36, a Chinese national of Shenzhen, China, are both charged in the indictment. Neither is currently in federal custody.

This case is being investigated jointly by Homeland Security Investigations (HSI) and the FBI.

This case is being prosecuted by Assistant U.S. Attorney Brian Werner of the Western District of Washington, and Senior Counsel Anand Patel of the Justice Department’s Computer Crime and Intellectual Property Section. The government also recognizes the significant contribution to this case by former Assistant United States Attorney Francis Franze-Nakamura.


According to THIS article Max Louarn is still wanted by the FBI in the US with a pending legal case in France as well, and based on reports he's currently living in an apartment in Avignon.

:arrow: Update #2:
Seeing Gary Bowser For The First Time
My Extended Conversation with Gary Bowser (TX, Max, Hosting Websites, etc.)
 
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