BOSTON – A Russian national was sentenced to three years in federal prison yesterday for his role in a sophisticated ransomware scheme that preyed on victims across the country. Aleksei Shushliannikov, 23, facilitated the laundering of funds extorted from individuals whose computers were held hostage by malicious hackers.
U.S. Senior District Judge Mark L. Wolf handed down the sentence, which also includes three years of supervised release, forfeiture of illegally obtained profits and equipment, and an order for restitution to the victims. Shushliannikov pleaded guilty in November 2014 to one count of conspiracy to commit money laundering, one count of using a fictitious name and address in connection with the U.S. mail, and one count of identity fraud. He was initially charged in October 2013.
The operation began with hackers who infected victims’ computers with viruses, effectively locking them down until a ransom was paid. Victims were instructed to purchase MoneyPak cards – prepaid debit cards loaded with cash – and provide the corresponding numbers to the hackers. In some cases, the hackers brazenly posed as FBI agents, falsely claiming the agency was freezing the victims’ computers as part of a law enforcement action and demanding a “criminal fine” payable via MoneyPak to avoid arrest. The anonymity offered by MoneyPak numbers made them a prime vehicle for transferring funds.
Shushliannikov’s role was to ensure the hackers could access the stolen funds without raising red flags. Facing the risk of being caught on camera withdrawing large sums of cash from physical debit cards, the hackers turned to Shushliannikov to cash out the MoneyPak numbers. From December 2012 to February 2013, Shushliannikov purchased identities on the internet and used them to open prepaid debit cards. These cards were then mailed to a network of mail drops he established throughout New England, targeting unoccupied homes – often marked with “for sale” signs – in Massachusetts and New Hampshire.
Shushliannikov was a meticulous operator, carefully selecting mail drop locations to avoid detection. He would collect the debit cards, deliver them to an accomplice who loaded them with the ransom money, and then withdraw the funds as cash or deposit them into other people’s bank accounts, ultimately wiring the money to overseas accounts. His scheme unraveled when he was caught on camera removing mail from a mailbox in New Hampshire. A subsequent investigation revealed his GPS data linked him to multiple other mail drop locations. A search of his apartment yielded 246 prepaid debit cards, $26,000 in cash, and a money-counting machine, all of which have been seized.
The conspiracy opened approximately 1,100 prepaid debit cards and laundered, or attempted to launder, between $400,000 and $1 million. The case was a joint effort led by United States Attorney Carmen M. Ortiz, Inspector in Charge of the U.S. Postal Inspection Service Shelly Binkowski, and Special Agent in Charge of Homeland Security Investigations in Boston Bruce M. Foucart, with assistance from the Hampton, New Hampshire Police Department. Assistant U.S. Attorney Scott L. Garland of Ortiz’s Anti-Terrorism and National Security Unit prosecuted the case.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Cybercrime
- Source: Official Source ↗
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