The head of a Canada-based company pleaded guilty Tuesday in San Diego federal court to operating a criminal enterprise that facilitated the transnational importation and distribution of cocaine, heroin and methamphetamine to locations around the world through the sale and service of encrypted communications devices.
Vincent Ramos, CEO of Phantom Secure, faces a maximum of 20 years in prison and a $250,000 fine when he is sentenced Dec. 17.
According to his plea agreement, Ramos admitted that he and co-conspirators facilitated the distribution of drugs to places like Australia, Mexico, Canada, Thailand, Europe and the United States by supplying drug traffickers with Phantom Secure encrypted communications devices designed to thwart law enforcement.
To keep the communications out of the reach of authorities, Ramos and his accomplices maintained Phantom Secure servers in Panama and Hong Kong, using virtual proxy servers to disguise the physical location of the equipment, and remotely deleted or “wiped” devices seized by law enforcement, court papers show.
Prosecutors said 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 990 pounds of cocaine was distributed using Phantom Secure devices.
“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.”
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, a Lamborghini, gold coins and cryptocurrency accounts.
In addition, he agreed to forfeit the server licenses and more than 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.
His co-defendants — Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz — remain international fugitives, prosecutors said.
— City News Service
