Posts Tagged: Pharma Wars


12
Sep 11

Pharma Wars: Paying for Prosecution

In June 2011, Russian authorities arrested Pavel Vrublevsky, co-founder of ChronoPay, Russia’s largest processor of online payments, for allegedly hiring a hacker to attack his company’s rivals. New evidence suggests that Vrublevsky’s arrest was the product of a bribe paid by Igor Gusev, the other co-founder of ChronoPay and a man wanted by Russian police as a spam kingpin.

Igor Gusev, in an undated photo taken at a family birthday celebration.

Two years after forming ChronoPay in 2003, Gusev and Vrublevsky parted ways. Not long after that breakup, Gusev would launch Glavmed and its sister program SpamIt, affiliate operations that paid the world’s most notorious spammers millions of dollars to promote rogue Internet pharmacies. Not to be outdone, Vrublevsky started his own rogue pharmacy program, Rx-Promotion, in 2007, contracting with some of the same spammers who were working at Gusev’s businesses.

By 2009, the former partners were actively trying to scuttle each others’ businesses. Vrublevsky allegedly paid hackers to break into and leak the contact and earnings data from GlavMed/SpamIt. He also reportedly paid a man named Igor “Engel” Artimovich to launch a volley of distributed denial-of-service (DDoS) attacks against SpamIt.

Gusev told me he long suspected Artimovich was involved in the attacks, and that he had information that Vrublevsky hired Artimovich to attack ChronoPay’s rivals while they were locked in a competition for a lucrative contract to process online payments for Aeroflot, Russia’s biggest airline.

Last month, hundreds of chat conversations apparently between Gusev and his right-hand man, Dmitry Stupin, were leaked online. They indicate that Gusev may have caused Vrublevsky’s arrest by paying Russian law enforcement investigators to go after Artimovich.

Over the past year, Gusev has insisted in numerous phone interviews that the increasingly public conflict between him and Vrublevsky was not a “war,” but more of a personal spat. But if the chat below is accurate, Gusev most certainly viewed the conflict as a war all along.

The following is from a leaked chat, allegedly between Gusev and Stupin, dated Sept. 26, 2010. The two men had already decided to close SpamIt, and were considering whether to do the same with GlavMed. “Red,” mentioned twice in the discussion below, is a reference to Vrublevsky, also known as “RedEye.”

Gusev: $2k from HzMedia to China – it’s mine. We also need to send additional money for salaries plus double bonus to Misha (Michael). I have already paid $50k for Engel’s case (20к – forensics, $30к – to speed up the starting of the criminal case)

Stupin: Why have you paid for Engel’s case ? I was even against paying for the Red’s case. Why pay for Engel’s?  What is the point?

Gusev: To my mind, you do not fully understand what’s been going on for the last year. Paul has a plan to either throw me into jail or end me. His intentions are totally clear. There are only two choices: 1 – do nothing, and pay nothing to nobody, and at the end either go to jail or keep hiding until all the resources are exhausted; 2 – do the same thing, as he is doing, with the same goal.

Continue reading →


30
Aug 11

Pharma Wars: Purchasing Protection

Leaked online chats between the co-owners of the world’s largest pharmacy spam operation reveal the extent to which illicit organizations in Russia purchase political protection, and bribe public officials into initiating or stalling law enforcement investigations.

Last month, there was a leak of more than four years of chat logs seized by Russian police who had arrested and interrogated Dmitry Stupin, allegedly the co-owner of GlavMed and the now-defunct SpamIt, organizations that paid spammers millions of dollars each month to promote fly-by-night online pharmacies.

In the the Jan. 9, 2010 chat between Stupin and Igor Gusev, the alleged other owner of GlavMed and SpamIt, Gusev has just learned that he and his operation are under investigation by Russian authorities (Gusev would be formally charged with illegal business activities in October 2010, forcing the closure of SpamIt). Gusev says he may be able to purchase shelter from the charges by funneling money to key Russian politicians who have influence over investigators.

Specifically, Gusev suggests purchasing a sponsorship of the Volleyball Federation of Russia. The price tag for this is an official sponsorship fee of 10 million rubles (about $350,000 USD), plus $150,000 in cash. The official head of the federation, Nikolai Patrushev, is a powerful man in Russian law enforcement. Patrushev was director of the Russian FSB, the successor organization to the KGB, from 1999 to 2008; he has been secretary of the Security Council of Russia since 2008.

Sources say it is typical for Russian sport leagues and charities to be used as vehicles for funneling money into the pockets of policymakers. One example comes from a book by Lennart Dahlgren, former head of the Russian division of Swedish furniture maker IKEA. In Despite Absurdity: How I Conquered Russia While It Conquered Me, Dahlgren writes of having to pay bribes of 30 million Rubles ($1 million USD) to Russian charities that helped funnel money to bureaucrats and top officials.

In this chat, translated from Russian into English, Gusev mentions that a close friend of his family is a director general of the Volleyball Federation;

Gusev: We have big problems. Register fake mailbox somewhere. I will send you something very important.

Gusev: Let’s move Jabber to a new server and encrypt it. We’ll have a trusted communication channel. Everything is very bad :(

Gusev: asdas12334@mail.ru / mgadjadtwa2009. check the e-mail.

Gusev: Are you reading?

Stupin: Yes. Do not know what to say.

Gusev: There is nothing to say. We have only two ways: find someone from law enforcement, pay up and be under protection [or] be placed in jail for 7-9 years and do self-analysis. I have one more way out, but I could not decide regarding it in December, because it was very expensive. It is about 10 million rubles officially and 150K under the table.

Continue reading →