Retrial ends in Idaho family’s fake-cellphone, wire fraud cases. Here are the verdicts
Nearly four years after an FBI raid and following two trials in federal court, five people have been convicted in connection with a family’s Treasure Valley-based illegal cellphone and cellphone accessory business.
U.S. Attorney for the District of Idaho Josh Hurwit announced at a news conference Tuesday that five of seven defendants were found guilty of crimes ranging from wire fraud to trafficking in counterfeit goods.
These individuals face up to 20 years and a fine of up to $250,000 for wire and mail fraud convictions and up to 10 years and a fine of up to $5 million for counts of trafficking in counterfeit goods.
Defendants Kristina Babichenko and Anna Iyerusalimets were acquitted on all counts, Hurwit said. The Idaho Statesman previously reported that Babichenko faced counts of conspiracy to commit wire fraud, mail fraud, trafficking in counterfeit goods and trafficking in counterfeit devices; and Iyerusalimets faced two counts of wire fraud, two counts of trafficking in counterfeit goods and a single count of conspiracy to commit wire fraud.
The case began in August 2018 when 10 individuals were indicted in connection to a business that U.S. attorneys said was selling counterfeit Apple and Samsung cellphones on Amazon and eBay, according to previous Statesman reporting. Members of the Babichenko family bought these phones in China and Hong Kong and smuggled them back into the United States, the government said.
This operation went on for over a decade and resulted in the sale of $41 million worth of counterfeit devices, Hurwit said Tuesday. It was ultimately broken up after FBI and Homeland Security agents bought devices from the perpetrators and later raided multiple homes and warehouses, the Statesman reported.
Artur Pupko, one of the individuals who was arrested, pleaded guilty in September 2019 to several charges.
Case retried after hung jury in September 2021
Nine defendants stood trial in the case last September. It lasted 10 weeks, and the judge dismissed all charges against Gennady Babichenko. Natalya Babichenko was acquitted on counts of conspiracy to commit wire fraud and trafficking in counterfeit goods, the Statesman reported.
The jury could not unanimously agree on verdicts for the other seven defendants, meaning it deadlocked on those charges. That meant the counts against Pavel Babichenko, Piotr Babichenko, Timofey Babichenko, David Bibikov, Mikhail Iyerusalimets, Anna Iyerusalimets and Kristina Babichenko remained outstanding until a retrial, which began on May 18 and concluded on Monday, according to the U.S. attorney’s office.
The convictions on fraud, counterfeit charges
Court documents in PACER (Public Access to Court Electronic Records) and an email from the U.S. attorney’s office listed the following convictions:
Pavel Babichenko: Convicted of conspiracy to commit wire fraud, conspiracy to traffic in counterfeit goods, labels or packaging and trafficking in counterfeit goods.
Piotr Babichenko: Convicted of conspiracy to commit wire fraud and conspiracy to traffic in counterfeit goods, labels or packaging.
Timofey Babichenko: Convicted of conspiracy to commit wire fraud, two counts of wire fraud, two counts of mail fraud, one count of conspiracy to traffic in counterfeit goods, labels or packaging and one count of trafficking in counterfeit goods.
David Bibikov: Convicted of conspiracy to commit wire fraud, wire fraud, mail fraud and conspiracy to traffic in counterfeit goods, labels or packaging. Bibikov was acquitted on one count of trafficking in counterfeit goods.
Mikhail Iyerusalimets: Convicted of conspiracy to commit wire fraud, two counts of wire fraud, two counts of mail fraud, two counts of trafficking in counterfeit devices and one count of conspiracy to traffic in counterfeit goods, labels or packaging.
Hurwit said the jury deliberated for a week after a long trial.
“At its core, this case was about protecting the public and the integrity of the marketplace for consumer products,” Hurwit said. “Consumers must be confident in the safety, quality, and legitimacy and authenticity of the products they purchase online.”
This story was originally published August 3, 2022 at 11:55 AM.
