Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Latvian man charged by U.S. over Gozi computer virus pleads guilty

Published 09/04/2015, 02:09 PM
Updated 09/04/2015, 02:09 PM
© Reuters. U.S. Attorney for the Southern District of New York Bharara holds a news conference on the Gozi Virus in New York

By Nate Raymond

NEW YORK (Reuters) - A Latvian man pleaded guilty on Friday to engaging in a scheme to transmit a computer virus that infected more than a million computers worldwide and caused tens of millions of dollars in losses.

Deniss Calovskis, 30, pleaded guilty in federal court in Manhattan to conspiring to commit computer intrusion, admitting that he had been hired to write some of the computer code that made the so-called Gozi virus so effective.

"I knew what I was doing was against the law," Calovskis said in court.

The plea followed Calovskis' extradition in February from Latvia, where he was arrested in November 2012 and held for 10 months in jail.

Under a plea agreement, Calovskis, who has been in U.S. custody since his extradition, agreed not to appeal any sentence of two years in prison or less.

David Bertan, his lawyer, called it an "open question" whether Calovskis would receive credit for his time in custody in Latvia. Sentencing is scheduled for Dec. 14.

The Gozi virus was discovered in 2007. It stole personal bank account information of computer users while remaining virtually undetectable.

By the time U.S. authorities announced charges in 2013, more than a million computers worldwide had been infected, including at least 40,000 in the United States, over 160 of which belonged to the National Aeronautics and Space Administration.

The indictment against Calovskis was unsealed in January 2013 as prosecutors announced charges against Nikita Kuzmin, the virus' Russian creator, and Mihai Ionut Paunescu, a Romanian accused of running a service that enabled its distribution.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Prosecutors said Kuzmin was the mastermind of the operation, conceiving of the virus in 2005 and running a business that rented out the virus to other cyber criminals intent on stealing money from banks.

Prosecutors said Calovskis, who resided in Riga, Latvia, and went online as "Miami," helped develop code that increased the virus' effectiveness by altering the appearance of banks' websites, tricking victims into divulging their information.

Kuzmin, who was originally arrested in 2010, secretly pleaded guilty in May 2011 as part of a cooperation agreement with prosecutors.

Pauneschu was arrested in Romania in December 2012. His extradition remains pending, a spokesman for Manhattan U.S. Attorney Preet Bharara said.

The case is U.S. v. Calovskis, U.S. District Court, Southern District of New York, No. 12-cr-00487.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.