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Kazakhstani National Gets 27 Months for Money Laundering Scam
A 26-year-old Kazakhstani national has been sentenced to 27 months in prison for his role in a sophisticated stock fraud scheme that left more than $400,000 in losses.
Daniyar Zhaxalyk, who entered the United States on a student visa, was sentenced by U.S. District Judge Ewing Werlein Jr. in the Southern District of Texas. He was also ordered to pay $221,925 in restitution.
Zhaxalyk will be deported from the United States upon the completion of his sentence. His case is a stark reminder of the dangers of cybercrime and the need for vigilance in protecting our financial systems.
According to court documents, Zhaxalyk agreed to launder funds generated in a sophisticated “hack and dump” stock scheme. The indictment charges that his co-conspirators illegally accessed brokerage accounts to engage in a stock fraud scheme that caused significant losses to victims.
A co-defendant, Alexey Li, also a citizen of Kazakhstan who entered the United States on a student visa, previously pleaded guilty in Houston on March 2, 2012, and was sentenced to three months in prison and ordered to pay $40,000 in restitution. Two other defendants remain at large.
The case was investigated by the St. Louis, San Francisco and Houston offices of the FBI. The case is being prosecuted by Trial Attorney Ethan Arenson of the Computer Crime and Intellectual Property Section in the Criminal Division and Assistant U.S. Attorney Mark McIntyre of the Southern District of Texas.
The sentencing of Zhaxalyk serves as a warning to those who would seek to exploit our financial systems for personal gain. It also highlights the importance of international cooperation in combating cybercrime and money laundering.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes|Cybercrime|White Collar Crime
- Source: DOJ Press Release ↗
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