A California man this week admitted before a U.S. district judge to his role in a $50 million internet-enabled fraud scheme.
Court documents claim that, between 2012 and 2020, Allen Giltman, 56, of Irvine, California, created fraudulent websites to ask for funds from investors.
Working with others, the defendant created websites closely resembling the websites of legitimate financial institutions, as well as websites of seemingly legitimate institutions that in fact did not exist.
The fraudulent websites, which could be discovered by Internet searches, advertised investment opportunities, including the purchase of certificates of deposit. The advertisements promised high rates of return, to lure potential victims.
To appear legitimate, the websites displayed the actual names and logos of financial institutions and claimed that the institutions were regulated by known authorities that also insured the deposits made by investors.
Court documents also allege that, when contacted by victims by phone or email, Giltman impersonated real Financial Industry Regulatory Authority (FINRA) broker-dealers and then provided victims with instructions to purchase certificates of deposit.
The defendant allegedly moved funds wired by the victims to various bank accounts, including accounts in Hong Kong, the Republic of Georgia, Russia, and Turkey.
At least 150 fraudulent websites were created as part of the scheme, and at least 70 individuals fell victim to it. The victims are believed to have sent the perpetrators roughly $50 million, but none of them ever received a certificate of deposit.
If found guilty of wire fraud conspiracy, Giltman could be sentenced to up to 20 years in prison and a fine of $250,000. He could receive up to five years in prison for the securities fraud charge.
Related: Estonian Botnet Operator Pleads Guilty in U.S. Court
Related: Identity Fraud: A Major Growth Area for Criminals
Related: Dutch Police Arrest Alleged Member of ‘Fraud Family’ Cybercrime Gang

More from Ionut Arghire
- Former Ubiquiti Employee Who Posed as Hacker Pleads Guilty
- Atlassian Warns of Critical Jira Service Management Vulnerability
- Exploitation of Oracle E-Business Suite Vulnerability Starts After PoC Publication
- Google Shells Out $600,000 for OSS-Fuzz Project Integrations
- F5 BIG-IP Vulnerability Can Lead to DoS, Code Execution
- Flaw in Cisco Industrial Appliances Allows Malicious Code to Persist Across Reboots
- HeadCrab Botnet Ensnares 1,200 Redis Servers for Cryptomining
- Malicious NPM, PyPI Packages Stealing User Information
Latest News
- Microsoft: Iran Unit Behind Charlie Hebdo Hack-and-Leak Op
- Feds Say Cyberattack Caused Suicide Helpline’s Outage
- Big China Spy Balloon Moving East Over US, Pentagon Says
- Former Ubiquiti Employee Who Posed as Hacker Pleads Guilty
- Cyber Insights 2023: Venture Capital
- Atlassian Warns of Critical Jira Service Management Vulnerability
- High-Severity Privilege Escalation Vulnerability Patched in VMware Workstation
- Exploitation of Oracle E-Business Suite Vulnerability Starts After PoC Publication
