Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604, Mark W. Pletcher (619) 546-9714

NEWS RELEASE SUMMARY – May 28, 2019

SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, was sentenced to nine years in prison today for leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale of encrypted communication devices and services.  The Court also ordered Ramos to forfeit $80 million as proceeds of the crime, as well as specifically identified assets, including international bank accounts, real estate, cryptocurrency accounts, and gold coins.    

This conviction marks the first time the United States targeted a company and convicted its chief executive for knowingly providing transnational criminal organizations with the encrypted infrastructure to conduct the international importation and distribution of narcotics.

“Vincent Ramos is going to prison because he provided violent, drug trafficking organizations with a high tech tool that enabled them to coordinate their crimes while staying in the shadows,” said U.S. Attorney Robert Brewer.  “But Ramos’s system is down permanently, he has forfeited his wealth, and he is going to prison for nearly a decade.  We will continue to investigate and prosecute these individuals, whether they are the ones transporting and selling drugs, or providing the tools to those who do.”

“I want to thank prosecutors Andrew Young, Ben Katz and Mark Pletcher, as well as the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, U.S. Marshals Service, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case,” Brewer said.

“Striking at the heart of organized crime has always been a priority for the FBI,” said Scott Brunner, FBI Special Agent in Charge of the San Diego Field Office. “This case demonstrates that no matter the dangerous criminal activity or the advanced technology used by these sophisticated criminal enterprises, the FBI will keep pace to infiltrate and dismantle the organizations that, in today’s world, operate domestically and internationally. As a result, the FBI joins forces with exceptional law enforcement partners both in the U.S. and abroad, to ensure every tentacle of the global enterprise is severed and cannot operate its illegal and dangerous crimes.”

Ramos advertised Phantom Secure’s products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure routinely deleted and destroyed evidence from devices that it knew had been seized by law enforcement.  According to Court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities:  leadslinger@freedomsecure.me; The.cartel@freedomsecure.me; The.killa@freedomsecure.me; Trigger-happy@lockedpgp.com; Knee_capper9@lockedpgp.com; Elchapo66@lockedpgp.com;  Time4a187@freedomsecure.me.     

According to court documents, one of Ramos’s customers, Owen Hanson (who was previously sentenced to 21 years in custody), used only six Phantom Secure devices to coordinate the transportation of more than a ton of cocaine from Mexico into the United States and on to Canada and Australia.  The government conservatively estimates there were at least 7,000 Phantom Secure devices in use at the time Ramos was arrested--meaning that “the amount of drugs Phantom Secure aided and abetted in transporting by providing devices and services to criminals worldwide was too high calculate.” 

Ramos’ customers used his products to devastating and sometimes deadly effect, and Ramos used this to market his encryption services to criminals across the world.  According to court documents, in response to a March 5, 2014 news article that reported investigations of a gangland murder were stymied because the suspects used Phantom Secure devices to coordinate the killing, Ramos wrote, “this is the best verification on what we have been saying all along – proven and effective for now over nine years.  It is the highest level of authority confirming our effectiveness.  It can’t get better than that.”    

The international operation to arrest Ramos and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, and Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand. 

Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world.  All have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; United States Marshals Service; U.S. Customs and Border Protection; the United States Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.

DEFENDANT                                               Case Number 18CR1404-WQH                                         

Vincent Ramos (1)                                          Richmond, British Columbia, Canada

   aka “CEO”

   aka “Business”

SUMMARY OF CHARGES

Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)

Maximum Penalty: 20 years in prison

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

United States Marshals Service

Department of Justice, Office of International Affairs

Australian Federal Police

New South Wales Police (Australia)

New South Wales Crime Commission (Australia)

Australian Criminal Intelligence Commission

Royal Canadian Mounted Police

International Assistance Group, Department of Justice, Canada

 

Assistant U. S. Attorneys Andrew Young (619) 546-7981, Mark W. Pletcher (619) 546-9714 and Benjamin J. Katz (619) 546-9604

NEWS RELEASE SUMMARY – October 2, 2018

SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, pleaded guilty today to leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications devices.

In his plea agreement, Ramos admitted that he and his co-conspirators facilitated the distribution of cocaine, heroin, and methamphetamine to locations around the world including in the United States, Australia, Mexico, Canada, Thailand and Europe by supplying narcotics traffickers with Phantom Secure encrypted communications devices designed to thwart law enforcement.  To keep the communications out of the reach of law enforcement, Ramos and others maintained Phantom Secure servers in Panama and Hong Kong, used virtual proxy servers to disguise the physical location of its servers, and remotely deleted or “wiped” devices seized by law enforcement.  Ramos and his co-conspirators required a personal reference from an existing client to obtain a Phantom Secure device. And Ramos used digital currencies, including Bitcoin, to facilitate financial transactions for Phantom Secure to protect users’ anonymity and launder proceeds from Phantom Secure. Ramos admitted that at least 450 kilograms of cocaine were distributed using Phantom Secure devices. 

As part of his guilty plea, Ramos agreed to an $80 million forfeiture money judgment as well as the forfeiture of tens of millions of dollars in identified assets, ranging from bank accounts worldwide, to houses, to a Lamborghini, to cryptocurrency accounts, to gold coins.  In addition, Ramos agreed to forfeit the server licenses and over 150 domains which were being used to operate the infrastructure of the Phantom Secure network, enabling it to send and receive encrypted messages for criminals.

“The Phantom Secure encrypted communication service was designed with one purpose – to provide drug traffickers and other violent criminals with a secure means by which to communicate openly about criminal activity without fear of detection by law enforcement,” said U.S. Attorney Adam Braverman.  “As a result of this investigation, Phantom Secure has been dismantled and its CEO Vincent Ramos now faces a significant prison sentence. The United States will investigate and prosecute anyone who provides support, in any form, to criminal organizations, including those who try to help criminal organizations ‘go dark’ on law enforcement.”

“Today’s guilty plea of Phantom Secure’s CEO, Vincent Ramos, is a significant strike against transnational organized crime,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office.  “The FBI and our international law enforcement partners have demonstrated that we will not be deterred by those who exploit encryption to benefit criminal organizations and assist in evading law enforcement.  With this case, we have successfully shut down the communication network of dangerous criminals who operated across the globe.”

Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world.  All have been charged with Conspiracy to Commit Racketeering in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

Ramos is scheduled to be sentenced on December 17, 2018 before U.S. District Judge Sentencing was set for December 17 before Judge Hayes

This case was investigated by FBI San Diego. In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; Customs and Border Protection; the Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.

DEFENDANT                                               Case Number 18CR1404-WQH                                         

Vincent Ramos (1)                                          Richmond, British Columbia, Canada

   aka “CEO”

   aka “Business”

SUMMARY OF CHARGES

Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)

Maximum Penalty: 20 years prison

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

Department of Justice, Office of International Affairs

Australian Federal Police

New South Wales Police (Australia)

New South Wales Crime Commission (Australia)

Australian Criminal Intelligence Commission

Royal Canadian Mounted Police

International Assistance Group, Department of Justice, Canada

Assistant U. S. Attorneys Andrew P. Young (619) 546-7981, Mark W. Pletcher (619) 546-9714 and Benjamin J. Katz (619) 546-9604

NEWS RELEASE SUMMARY – March 15, 2018

SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury today on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications.

This is the first time the U.S. government has targeted a company and its principals for knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.

“With one American dying of a drug overdose every nine minutes, our great nation is suffering the deadliest drug epidemic in our history,” Attorney General Jeff Sessions said. “Incredibly, some have sought to profit off of this crisis, including by specifically taking advantage of encryption technologies to further criminal activity, and to obstruct, impede, and evade law enforcement, as this case illustrates.  The Department of Justice will aggressively prosecute not just drug traffickers, but those who help them spread addiction and death in our communities. I want to thank the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case. Today's indictment sends a clear message that drug traffickers and criminals cannot hide, because we will hunt them down and find them wherever they are.”

“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result of this groundbreaking prosecution, we will disable the communication infrastructure provided by a criminal enterprise to drug traffickers and other violent criminals. Phantom Secure was designed to profit off of criminal activity committed by transnational criminal organizations around the world. We are committed to shutting these criminals down.”

“The indictment of Vincent Ramos and his associates is a milestone against transnational crime,” said FBI Director Christopher Wray.  “Phantom Secure allegedly provided a service designed to allow criminals the world over to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Ramos and his company made millions off this criminal activity, and our takedown sends a serious message to those who exploit encryption to go dark on law enforcement. I want to thank our partners at the Department of Justice, as well as our Australian and Canadian law enforcement partners, for their incredible work on this case.”

 “Hidden or undetected communication is key for any transnational organized crime network,” said John A. Brown, FBI Special Agent in Charge of the San Diego Field Office. “This case highlights how criminal enterprises, like Phantom Secure, knowingly provided advanced technology and encrypted private networks to transnational criminal operations in order to evade law enforcement. This break-through investigation has undoubtedly disrupted countless criminal organizations from operating their illegal and dangerous operations in the United States and abroad because their communications mechanism has been shut down.  This indictment shows the impact law enforcement, working together across the globe, can have on transnational organized criminal groups.  The San Diego Division of the FBI would like to recognize and thank our international law enforcement partners, who built this international case with exceptional and dedicated collaboration.”

Ramos was taken into custody in Bellingham, Washington, on March 7.  Ramos made his first appearance in the Western District of Washington and will face charges in San Diego. The remaining four defendants are fugitives.

According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement.  According to court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities: 

leadslinger@freedomsecure.me

The.cartel@freedomsecure.me

The.killa@freedomsecure.me

narco@lockedpgp.com

Trigger-happy@lockedpgp.com

Knee_capper9@lockedpgp.com

Elchapo66@lockedpgp.com

Time4a187@freedomsecure.me 

The indictment alleges that as a result of its efforts to facilitate international crime, Phantom Secure has generated approximately $80 million in annual revenue since 2008 and facilitated drug trafficking, obstruction of justice, and violent crime around the world. 

The international operation to arrest the company’s chief executive and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand. 

Over the past two weeks, in cooperation with Australian Federal Police and Royal Canadian Mounted Police, more than 250 agents around the globe conducted approximately 25 searches of houses and offices of Phantom Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and Canada, seizing Phantom Secure devices, assets, and evidence of the charged crimes.  The coordinated effort led to the seizure of servers, computers, cell phones, and Phantom Secure devices used to operate the Phantom Secure network, as well as drugs and weapons. 

Ramos and the others - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz - are charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. The defendants have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Aid and Abet the Distribution of Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

Authorities have seized Phantom Secure’s property, including more than 150 domains and licenses which were being used by transnational criminal organizations to send and receive encrypted messages. Authorities also seized bank accounts and property in Los Angeles, California and Las Vegas, Nevada.   

This case stems from an investigation in the Southern District of California of a Phantom Secure client who used Phantom devices to coordinate shipments of thousands of kilograms of cocaine and other drugs throughout the globe.  According to court documents, there were an estimated 10,000 to 20,000 Phantom devices in use worldwide before the authorities dismantled the company. This coordinated action means Phantom Secure’s clients can no longer use these devices to commit crimes.

According to Timothy O’Connor, Executive Director of the Criminal Investigations Division New South Wales Crime Commission, “The disruption of the Phantom Secure platform has been one of the most significant blows to organized crime in Australia.”    

In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; Customs and Border Protection; the Department of Homeland Security; Seattle and Las Vegas field office of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.

Speaking on behalf of Australian law enforcement authorities, Australian Federal Police (AFP) Assistant Commissioner Organised Crime, Neil Gaughan said today Australia’s role in this complex and unique investigation began in early 2017 following an exchange of intelligence with the FBI and Royal Canadian Mounted Police (RCMP).

As a result, Australian authorities executed 19 search warrants across four states last week as part of the international action, where more than 1,000 encrypted mobile devices were seized.

“The action taken in the U.S. directly impacts the upper echelons of organized crime both here in Australia and offshore, who until now have been able to confidently control and direct illicit activity like drug importations, money laundering and associated serious criminal offending,” said Assistant Commissioner Gaughan.

“Our thanks go to our international partners – the FBI and RCMP – who have been outstanding in working methodically around the clock together with us on this unique investigation. Without their cooperation, commitment and shared singular drive, Australian law enforcement agencies would not be announcing this significant result today.”

Australian agencies involved in this investigation include the Australian Criminal Intelligence Commission, the New South Wales Crime Commission, state police from New South Wales, Victoria, Queensland, South Australia and Western Australia, the Australian Tax Office and financial intelligence agency AUSTRAC.

“This investigation is a prime example of law enforcement agencies from around the world working together to identify, investigate and charge people involved in transnational criminal activity,” says Assistant Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative Services and Organized Crime. “We remain committed to investigating and disrupting these illegal activities that adversely affect each of our communities.”

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

DEFENDANTS                                                                                           

Vincent Ramos (1)                              Richmond, British Columbia Canada

   aka “CEO”

   aka “Business”

Kim Augustus Rodd (2)                      Phuket, Thailand

   aka Visith Vongthai

   aka “Snowstar”

   aka “Global”

Younes Nasri (3)                                 Dubai, United Arab Emirates

   aka “Maestro”

   aka “Jesse”

Michael Gamboa (4)                           Los Angeles, CA

   aka “Chino”

Christopher Poquiz (5)                       Los Angeles, CA

   aka “Caddy”

   aka “Cad”

SUMMARY OF CHARGES

Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of 18 USC §1962(d)

Maximum Penalty: Life in prison

Conspiracy to Aid and Abet the Distribution of Narcotics, in violation of 21 USC §841 and 846; Title 18 USC §2

Maximum Penalty: Life in prison

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

Department of Justice, Office of International Affairs

Australian Federal Police

New South Wales Police (Australia)

New South Wales Crime Commission (Australia)

Australian Criminal Intelligence Commission

Royal Canadian Mounted Police

International Assistance Group, Department of Justice, Canada

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.