Eastern District of New York

FOR IMMEDIATE RELEASE

Wednesday, December 30, 2020

Ticketmaster Pays $10 Million Criminal Fine for Intrusions into Competitor’s Computer Systems

Ticketmaster Used Passwords Unlawfully Retained by a Former Employee of a Competitor to Access Computer Systems in Scheme to “Choke Off” the Victim’s Business

Earlier today in federal court in Brooklyn, Ticketmaster L.L.C. (Ticketmaster or the Company) agreed to pay a $10 million fine to resolve charges that it repeatedly accessed without authorization the computer systems of a competitor. The fine is part of a deferred prosecution agreement that Ticketmaster has entered with the United States Attorney’s Office for the Eastern District of New York to resolve a five-count criminal information filed today charging computer intrusion and fraud offenses. Previously, on October 18, 2019, Zeeshan Zaidi, the former head of Ticketmaster’s Artist Services division, pled guilty in a related case to conspiring to commit computer intrusions and wire fraud based on his participation in the same scheme. Both cases are assigned to U.S. District Judge Margo K. Brodie.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation’s New York Field Office, made the announcement.

“Ticketmaster employees repeatedly – and illegally – accessed a competitor’s computers without authorization using stolen passwords to unlawfully collect business intelligence,” stated Acting U.S. Attorney DuCharme. “Further, Ticketmaster’s employees brazenly held a division-wide ‘summit’ at which the stolen passwords were used to access the victim company’s computers, as if that were an appropriate business tactic. Today’s resolution demonstrates that any company that obtains a competitor’s confidential information for commercial advantage, without authority or permission, should expect to be held accountable in federal court.”

"When employees walk out of one company and into another, it's illegal for them to take proprietary information with them. Ticketmaster used stolen information to gain an advantage over its competition, and then promoted the employees who broke the law. This investigation is a perfect example of why these laws exist - to protect consumers from being cheated in what should be a fair market place,” stated FBI Assistant Director-in-Charge Sweeney.

https://www.justice.gov/usao-edny/pr/ticketmaster-pays-10-million-criminal-fine-intrusions-competitor-s-computer-systems-0

Department of Justice

U.S. Attorney’s Office

District of Nevada

FOR IMMEDIATE RELEASE

Wednesday, December 30, 2020

U.S. Attorney's Office And FBI Announce Federal Charges and Arrests In December 2020 Human Trafficking Takedown

More Federal Human Trafficking Cases Charged in 2020 in the District of Nevada Than in Any Previous Year

LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich and Special Agent in Charge Aaron C. Rouse of the FBI announced today a federal human trafficking takedown in the District of Nevada. With this takedown, the District of Nevada closes out 2020 having filed more human trafficking cases than in any previous year.

Human trafficking — a crime that involves the use of force, fraud, or coercion to lure victims and force them into labor or commercial sexual exploitation — is a top priority area for the U.S. Attorney’s Office, the FBI, and their law enforcement and community partners. Every year, millions of women, men, and children are trafficked worldwide, including in Nevada.

“Combating sex trafficking is one of our prosecutors’ top enforcement priorities, and our office now has the pieces in place to stay at the forefront of this fight,” said U.S. Attorney Trutanich. “Heading into 2021, we remain committed to increasing investigations and prosecutions of traffickers, taking them off the streets and away from victims.”

“The FBI will always be vigilant in pursuing those who choose to prey on our most vulnerable, especially our children,” said Special Agent in Charge Rouse. “I would like to thank our law enforcement partners and their task force officers as part of the FBI's Child Exploitation Task Force for their commitment to making these arrests.”

This month, the U.S. Attorney’s Office brought five prosecutions related to human trafficking. Two of the five defendants were charged with federal sex trafficking offenses:

On December 15, 2020, Kenton King, 25, of Las Vegas, was indicted on one count of coercion and enticement, one count of sexual exploitation of a child, one count of attempt sex trafficking, and one count of possession of child pornography. According to allegations in the indictment, King attempted to coerce and entice an underage victim to engage in numerous sexual offenses, including prostitution.

The case was investigated by the Henderson Police Department and the FBI. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.

On December 3, 2020, Jeffrey Lofstead, 63, of Kings Beach, California, was indicted on one count of attempted sex trafficking of children. According to allegations in the indictment, on or about October 7, 2020, Lofstead attempted to recruit and solicit a child, who had not yet attained the age of 18 years, to engage in a commercial sex act.

The case was investigated by the FBI’s Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of federal, local, and state law enforcement. Assistant U.S. Attorney Peter Walkingshaw is prosecuting the case.

In addition to the sex trafficking cases above, the December 2020 takedown included three other individuals charged with federal firearm offenses who either had been previously convicted of pandering offenses or whose alleged offenses related to vice operations:

On December 9, 2020, Tamarion Keandre Williams, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 21, 2020, Williams illegally possessed a .40 caliber semi-automatic pistol. At the time of the alleged offense, Williams was on probation due to convictions for pandering and battery with substantial bodily harm in Clark County.

The case was investigated by the FBI, the Nevada Division of Probation, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.

On December 29, 2020, Darryl Henderson, of Las Vegas, made his initial appearance in federal court on a felon in possession of a firearm charge. As alleged in the criminal complaint, beginning on August 12, 2020, and continuing until on or about September 8, Henderson illegally possessed a .22 caliber semi-automatic pistol. Henderson is prohibited from possessing firearms due to prior felony convictions in Clark County. He was also pending sentencing in Nevada state court after pleading guilty to attempt pandering, which is a felony.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Bianca Pucci is prosecuting the case.

On December 21, 2020, Adrian Anguiano, of Las Vegas, was charged with one count of felon in possession of a firearm. As alleged in the criminal complaint, on November 27, 2020, Anguiano illegally possessed a 9mm semi-automatic pistol. Two weeks earlier, on November 13, police officers had observed a female enter Anguiano’s truck in an area known for prostitution. When officers attempted to contact the vehicle’s occupants, the driver fled, ramming a police vehicle and nearly hitting an officer in the process. The female was thrown from the vehicle, fracturing her skull and rendering her unconscious. Subsequent investigation identified Anguiano as the vehicle’s driver. On November 27, Anguiano was arrested by local law enforcement as he left his residence. A protective sweep of the residence revealed a 9mm semi-automatic pistol in plain view in Anguiano’s bedroom. He subsequently admitted to being in possession of the firearm.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.

Other federal sex trafficking charges that federal prosecutors filed in the District of Nevada in 2020 include:

On October 6, 2020, Denzel Renyal Michael Loyd, 35, of Las Vegas, was charged in a 10-count indictment with four counts of coercion and enticement; three counts of sexual exploitation of a child; one count of transfer of obscene material to minor; one count of sex trafficking of children; and one count of possession of child pornography. As alleged, from February 5 to March 9, 2020, Loyd coerced and enticed four underage victims via Facebook to engage in prostitution for him. The indictment further alleges that Loyd sent obscene material to a victim, and that he possessed child pornography on his cell phone.

The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.

On June 3, 2020, Mario Alston, 42, of Las Vegas, was charged with one count of attempted sex trafficking of children.

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