How is Gery Shalon Still Perpetrating Fraud?
Astute readers may be asking the question of, ‘How is Gery Shalon still perpetrating fraud?’ because this report outlined that Gery Shalon was:
- Facing over a dozen charges in federal court in 2016 for playing an integral role in the largest attack on a financial institution in U.S. history.
- Facing several more federal charts for his role in numerous frauds, scams and thefts of tens of millions of dollars from investors
- Facing additional federal charges for stock/market manipulation tactics
- Facing federal charges for money laundering
- Facing federal federal charges for using fraudulent identities, passports and perpetrating identity theft by stealing sensitive personal information like Social Security numbers from unwitting victims.
Thus, it stands to reason that the Gery Shalon saga should have been over years ago when he was apprehended in 2016, right?
Several news reports state that Gery Shalon is a free man at the time of publication (July 2019) and even speculate that Gery Shalon has been free for quite some time.
How the Hell is Gery Shalon Free Right Now?
Apparently, Gery Shalon was able to work out a deal with federal prosecutors, which saw Gery retaining his freedom in exchange for intel on other individuals in his criminal syndicate.
According to Bloomberg, Shalon’s intel regarding Russian hackers, specifically, has essentially allowed him to earn his freedom (see below):
Daily Beast published an article hinting at a possibility for extreme leniency/freedom for Gery Shalon as early as February 2018.
As reported by Daily Beast, it appears that the shuffling of attorneys among parties that are peripherally related to Gery Shalon helped expose the fact that Gery was cooperating with authorities.
Numerous Israeli publications have reported that Gery Shalon was granted freedom, specifically, on the condition of paying $400+ million in restitution as well as providing information to federal authorities about various Russian hackers.
Curiously, digging up information validating these claims actually indicates that Gery Shalon was involved in even more crime than what’s been covered thus far.
Below is an excerpt from the Israel-based publication, ‘HAARETZ’:
At this point, the Gery Shalon story takes a sharp right into the world of cryptocurrency.
Anthony Murgio, Gery Shalon and Coin.Mx
Almost all mentions of Gery Shalon being released from incarceration circa 2017 will involve the mention of an individual named ‘Anthony Murgio’.
For those that are unfamiliar, Anthony Murgio was one of the operators of a now-defunct cryptocurrency exchange, called ‘Coin.Mx’.
Anthony Murgio was also named as a co-defendant alongside Gery Shalon in a federal indictment by the U.S. SDNY.
‘Wait a minute, we just reviewed Gery Shalon’s federal indictment in the Southern District of New York and Anthony’s name wasn’t mentioned anywhere’
If that statement written above popped into your head as you were reading, don’t worry, you aren’t going crazy.
Anthony’s name wasn’t in that indictment was covered earlier in this report.
Let’s reference that indictment again to be absolutely sure:
Thus, Anthony Murgio was always part of the same indictment of Gery Shalon that specifically addressed his role in cyber fraud (among other crimes).
The press release for this announcement can still be found on the Department of Justice website.
What is worth strongly noting are the DOJ’s references to cybercrime. More importantly, the original press release regarding the indictment includes numerous references to Attorney General, Loretta Lynch (Obama-era; previous presidential administration) regarding her comments and disposition on the case.
The fact that Loretta Lynch’s attention was drawn to this case, speaks volumes about the level of priority it was given.
For those that are not familiar with U.S. politics or the governmental structure, there is a massive difference in legislative authority between the Attorney General and an Attorney General.
For instance, Preet Bharara, whom was a U.S. Attorney General for the Southern District of New York, at the time, is restricted to prosecuting cases in the Manhattan Supreme Court. Of course, given New York’s influence and general cultural and financial impact, the authorities granted to the Attorney General of New York are arguably greater than those exercised by Attorney Generals in other states.
The Attorney General of the United States (William Barr, currently) is essentially at the head of the entire Department of Justice for the United States.
To put Loretta Lynch’s role in greater context, here is a screenshot from the archived White House government website during the Obama administration, which she served under:
Quick Trivia: The list above presents cabinet members in order of succession, so if some crazy disaster happened and the President, VP, Secretary of State, Dept. of Treasury, and Dept. of Defense were all unable to serve, the sitting Attorney General would be de facto president.
Going Back to the Issue at Hand
Now that the importance of Loretta Lynch’s direct involvement in this case has been shelled out, the scale of crime for which Gery Shalon was under the thumb of the United States for should be more understood if it wasn’t already.
Below, is a brief look at a few excerpts from the original press release on the DOJ website announcing the unsealing of Shalon et. al’s indictment(originally posted November 10th, 2015) :
What’s strongly worth noting in the excerpt above is that Gery Shalon is framed as the primary target and perpetrator of the crimes for which is he being accused in the unsealed indictment.
Essentially, Shalon was being prosecuted as the ring leader responsible for orchestrating these crimes.
In fact, the press release goes on to state that,
“ Shalon also orchestrated computer network hacks and cyberattacks in furtherance of other major criminal schemes, including unlawful internet casinos and illicit payment processors which Shalon operated with Orenstein.”
The indictment then mentions Shalon’s involvement with crypto exchange Coin.MX, see below for the full excerpt:
The above excerpt tells us:
- Gery Shalon is the mastermind of all of this illegal activity, according to the U.S. government.
- While the hacking of financial institutions was a major focal point, so was his operation of illicit gambling and payment processing schemes (this should start sounding familiar to those investigating crime in the crypto space).
- Gery Shalon was the owner of Coin.MX. So, this confirms that he pretty heavily involved in the digital currency space.
- Anthony Murgio, Coin.MX’s operator, was charged in a separate indictment for some reason, despite being complicit (more than likely to a lesser extent) in the same crimes Gery Shalon was being charged for, with the exception of the hacking of U.S. financial institutions.
Statements by Attorney General Loretta Lynch in the Press Release
Greater Details About Gery Shalon by the DOJ
This section will contain excerpts from the DOJ that detail the various crimes Gery was accused of committing.
Gery Shalon Directed Hacks, Operated Illicit Companies, Fake Businesses, and Laundered Money (which netted him and his organization hundreds of millions of dollars)
Gery Shalon and Company Used Numerous Aliases and Were Prolific Identity Fraud Scammers, Leveraging Over 200 Fake Documents and Fake Passports Used to Establish Themselves in 1 of 16 Different Possible Countries
Gery Shalon and Co. Operated Illegal Gambling Organizations and Hacked the Individuals That Were Running Them As Well
Gery Shalon and Co. Were Involved in Extensive Market Manipulation Schemes
Gery Shalon and Co. Ran an Illicit Payment Processing Scheme and Also Used This to Orchestrate Hacks
Gery Shalon and Co. Operated a Bitcoin Exchange That Failed to Adhere to KYC/AML Laws
Gery Shalon and Gladius Network
Given all that’s written above, it stands to reason that the affiliation/attachment of an individual like Gery Shalon to Gladius Network should raise numerous red flags.
However, it appears that they have raised none. Furthermore, this exacerbates the SEC’s oversight in this case exponentially.