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Cybercrime billionaire Gery Shalon ordered to pay €413 million to U.S. Government!

Spread financial intelligence

If there were a list of the wealthiest cybercrime kingpins, Georgia-born Israeli Gery “Gabi” Shalon would be in the top 3. The 37-year-old Shalon has indeed redefined financial cybercrime and took it to the next level. He started his dark career with illegal online gambling businesses. In 2012, he expanded into online investment fraud, securities manipulation, and cryptocurrencies. The U.S. prosecutors charged him in 2015; he pled guilty in 2017 and was ordered to pay more than $413 million to the U.S. Government for his cybercrime offenses. He allegedly controls assets of about $2 billion.

The cybercrime network

PrincipalGery Shalon, aka Gery Shalelashvili,
aka Gabriel Shalon, aki Gabi Shalon
Related individualsShota Shalelashvili, Robert Shalelashvili, David Bar-El, Simon Tetroashvili, Andrei Tyurin, Vladislav Smirnov,
Gal Barak, Marina Barak, Uwe Lenhoff, Ziv Orenstein,
Joshua Samuel Aaron, and counting
Fields of operationOnline gambling, binary options, forex & CFD,
crypto, securities manipulation, computer hacking,
money-laundering
Court & Law enforcement activitiesUnited States, Germany, Germany, and counting
Statuspled guilty in U.S.
suspect in EU crime cases
Money judgment$413 million constituting proceeds of charged offenses (Final Order of Forfeiture)

The U.S. cybercrime charges & forfeiture

From approximately 2012 to mid-2015, Gery Shalon orchestrated massive computer hacking crimes against U.S. financial sector resulting stealing more than 100 client data; the largest theft in history. Shalon and his accomplices used the stolen customer data to run a huge pump-and-dump scheme with penny stocks.

Money judgment against Gery Shalon

U.S. prosecutors have charged Gery Shalon and his accomplices with 23 counts. Among them are computer hacking, securities fraud and manipulation, illegal online gambling, identity theft, and money laundering. After his arrest in Israel in 2015, Shalon was extradited to the U.S. in 2016. After a short time in prison, he was released to house arrest. In April 2017, Shalon pleaded guilty to all charges.

The Money Judgment

There is still no date for the Sentencing of Shalon. He is obviously working hard to keep the prison sentence as low as possible. That is why he has also agreed to a Monetary Judgment of more than $413 million.

In November 2021, Gery Shalon consented to the Monetary Judgment in the amount of $413,721,087, representing the amount of proceeds traceable to the cybercrime offenses charged that Shalon personally obtained. The U.S. prosecutors have identified the following assets of Shalon:

Name / Entity /OtherInstitution / PlaceAmount /Remarks
Bitcoins (BTC)Blockchain address ending
with y2Bx
202.45 BTC (appr. $9.5M)
BigTree Solutions Inc.
BigTree Solutions LLC
DeliverLogic Inc.
Specific properties BigTree Solutions transferred
properties to DeliverLogic
Gery Shalelashvili Cartu Bank (Georgia)
TBC Bank (Georgia)
Robert ShalelashviliTBC Bank (Georgia)
Aliner LtdVTB Bank (Georgia)
Cartu Bank (Georgia)
Kontur LPVTB Bank (Georgia)
Cartu Bank (Georgia)
Dyna International Holding LtdCartu Bank (Georgia)
Themo Business LtdCartu Bank (Georgia)
Artset Company CorpCartu Bank (Georgia)
BET Services N.V. Cartu Bank (Georgia)
Direct Finance LtdCartu Bank (Georgia)
Option Ground LtdCartu Bank (Georgia)
Milos MenkovicCartu Bank (Georgia)
Supertool Investments LimitedCartu Bank (Georgia)
Realzone Trading LimitedCartu Bank (Georgia)
Affare LimitedCartu Bank (Georgia)
Innovative Garden LimitedCartu Bank (Georgia)
Basis Bank (Georgia)
Ideal Seeker LimitedCartu Bank (Georgia)
Basis Bank (Georgia)
Ringo Enterprises LimitedCartu Bank (Georgia)
Bank of Cyprus (Cyprus)
Narrowserve Assets Ltd Bank of Cyprus (Cyprus)
Jakuss AndrisBank of Cyprus (Cyprus)
Beewings LimitedBank of Cyprus (Cyprus)
Sorila Commercial LtdBank of Cyprus (Cyprus)
Valentina PopovaBank of Cyprus (Cyprus)
Onimara Investments LtdBank of Cyprus (Cyprus)
Warmkal Trading LimitedHellenic Bank (Cyprus)
Telisium LimitedHellenic Bank (Cyprus)
Bank of Cyprus (Cyprus)
Sunserve Equities LtdHellenic Bank (Cyprus)
Plantena Investments LimitedHellenic Bank (Cyprus)
Ilforno Management LimitedHellenic Bank (Cyprus)
Erpefa Trading LimitedHellenic Bank (Cyprus)
Entersa LimitedHellenic Bank (Cyprus)
Leramo Consulting LimitedIpay International SA (Luxembourg)$459,415.79 seized
Terlinura Alliance LPSchroder & Co Bank AG (Switzerland)
Allvitone Systems LP Schroder & Co Bank AG (Switzerland)
Nener Finance CorpSchroder & Co Bank AG (Switzerland) $74,745,279.29 seized
Katar Enterprises Inc.Pasta Bank (Latvia)
Filipko KonstyantynPasta Bank (Latvia)

The U.S. government will liquidate the assets and apply the proceeds to the $413 million. However, the U.S. Government is authorized to seek forfeiture of substitute assets of Shalon up to the uncollected amount of the Money Judgment.

Follow the money

A merely cursory analysis of bank accounts seized by U.S. authorities shows that Gery Shalon and his network laundered large portions of their illicit income through banks in Georgia and Cyprus. In addition, Schroder & Co Bank in Switzerland also played an important role. There, U.S. prosecutors seized a whopping $75 million from a Nener Finance Corp account.

He maintained dozens of bogus companies, some of which he set up with stolen identities. Through the bank accounts of these companies, he laundered hundreds of millions of dollars, according to U.S. authorities. Shalon and his co-conspirators operated and their own credit and debit card payment schemes IDPay and Todur. They systematically misidentified and miscoded those transactions, in violation of bank and credit card company rules and regulations, the U.S. prosecutors found.

The $2 billion empire

People close to Gery Shalon claim that this $413M fine would not be a problem for him. U.S. authorities would not have discovered many of Shalon’s assets. Among them are online casinos Shalon set up through his partners Gal Barak, Vladislav Smirnov, and various trustees after his arrest in 2015. He did not stop building his cybercrime empire even during his house arrest in New York. Together with his father Shota Shalelashvili, a former member of the Georgian Parliament, he is said to control assets of around $2 billion.

Cybercrime is a highly profitable, highly scalable, and borderless business. Bank robbers, on the other hand, are a dying breed. Who still wants cash from safes?

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