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Brett Johnson: US Most Wanted Cybercriminal

第272期2022-03-27English

嘉宾:Brett Johnson

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§01Transcript · 00:00–09:00

00:00I was on the run for four months, stole $600,000.

00:03I was in Las Vegas, Nevada.

00:05One day I had stolen the night before

00:07and stolen 160K out of ATMs.

00:10Went in the next morning, I woke up,

00:12signed on to cartersmarket.com,

00:14which was ran by Max Butler, the Iceman.

00:17And there's my name, US Most Wanted on it.

00:21And that gets your attention.

00:24That was my real name with US Most Wanted beside of it.

00:26Nobody knew my real name in that environment at all,

00:29but then they did.

00:30And it was talking about me being part

00:32of the Secret Service, Operation Anglerfish,

00:34everything else.

00:36So of course, they're all like.

00:37Everybody's after you.

00:39They're like, oh yeah, we're gonna get this son of a bitch.

00:43The following is a conversation with Brett Johnson,

00:46a former cyber criminal who built the first

00:48organized cybercrime community called Shadow Crew

00:52that is the precursor to today's Darknet

00:54and Darknet markets.

00:56He's referred to by the United States Secret Service

00:58as quote, the original internet godfather.

01:02He has been the central figure in the cybercrime world

01:05for almost 20 years.

01:06Placed on the US Most Wanted list in 2006

01:10before being convicted of 39 felonies for cybercrime,

01:14escaped from prison, and then eventually being locked up,

01:17served his time, and now is helping people understand

01:21and fight cybercrime.

01:24This was a raw, honest, emotional, and real episode.

01:29Brett has caused a lot of pain to a lot of people,

01:32and yet his own story is full of trauma and pain,

01:36and also redemption and love.

01:40This is a good time to say that I have and I will

01:44talk to people who have served time in prison,

01:46and perhaps people who currently are in prison.

01:50I will try to do my best to both empathize

01:53with the person across from me and not let them sugarcoat,

01:56explain away, or dismiss the crimes they committed.

02:00This is a tough line to walk,

02:01because if you close your heart to the other person,

02:04you'll never fully understand their mind and their story.

02:08But if you open the heart too much,

02:10you can be manipulated to where the conversation

02:13reveals nothing honest or real.

02:17This requires skill and willingness to take the risk.

02:21I don't know about the skill part,

02:23but I'd like to take the risk.

02:25I always wear my heart on my sleeve.

02:27If I get hurt for it, that's life.

02:30As I've said, I want to understand

02:32what makes a person do these crimes,

02:34the particular characteristics of their temporary

02:37or permanent madness, their justifications,

02:41but also their humanity.

02:43I believe each of us have the capacity

02:45to become both the criminal and the victim,

02:48the predator and the prey.

02:50It's up to us to avoid these paths

02:53or to find the path to redemption.

02:55It's on each of us.

02:57It's our responsibility and burden

03:00of being human in a complicated and dangerous world.

03:05This is the Lex Friedman podcast.

03:07To support it, please check out our sponsors

03:09in the description.

03:10And now, dear friends, here's Brett Johnson.

03:15You were convicted of 39 felonies for cybercrime

03:19placed on the US most wanted list in 2006,

03:22escaped from prison.

03:24You built the first organized cybercrime community

03:27called Shadow Crew that is the precursor

03:30to today's darknet and darknet markets.

03:32And for all this, the US intelligence service

03:36called you the original internet godfather.

03:39So first question, how did your career

03:42as a cybercrime criminal begin?

03:45My life of crime begins when I'm 10 years old.

03:4710 years old, man, think about that.

03:49I mean, you were probably playing the robots

03:51when you were 10.

03:52You know, usually kids are doing the Lego bit,

03:55getting involved with sports, everything else.

03:57And with me, it wasn't like that.

04:00With me, I'm from Eastern Kentucky.

04:02Eastern Kentucky is one of these,

04:05it's like parts of Texas, parts of Louisiana,

04:08that if you're not fortunate enough to have a job,

04:11you may be involved in a scam, hustle, fraud,

04:13whatever you want to call it, man.

04:14I was, my parents, my mom was basically

04:20the captain of the entire fraud industry.

04:22So this is a woman that at one point,

04:25she's stealing a 108,000 pound Caterpillar D9 bulldozer,

04:29tramming it down the road.

04:31You know, at another point, she's taking a slip

04:32and falling a convenience store trying to sue the owner.

04:35We had a neighbor she acted as a pimp for at one point.

04:38That's my mom, my dad.

04:41Wait, wait, wait, the neighbor acted as a pimp?

04:45My mom prostituted, I mean,

04:47she acted as a pimp for a neighbor.

04:50Her name was Debbie and my mom used to sell her out.

04:54Debbie needed money and my mom would find men

04:56for her to sleep with for cash

04:58and she'd take a part of the cash.

05:00So Sauna's like she diversified the methodologies

05:05by which she hustled.

05:06Very, had that entrepreneurial spirit.

05:09Okay.

05:10You know, we see that a lot with cyber criminals,

05:14you know, that sense of being that entrepreneur.

05:16So what was the motivation you think for her?

05:19Is it money?

05:22Is it basically the rush of playing with the system

05:27or being able to know the rules

05:30and break the rules and get away with it?

05:32My mom's a complex character.

05:34She is, there's no one single motivation.

05:36So my mom was the individual, she's still alive.

05:40My mom was the individual who tested people.

05:45She wanted to know how far she could abuse you

05:48and you come back and still love her.

05:50So, and that was with every relationship she's ever had.

05:53She would cheat on the men she was involved with.

05:56She would abuse her children, me and Denise.

05:59She would...

06:00Psychological, physical?

06:02Oh, it was mental, emotional, physical,

06:06everything, everything.

06:07I mean, she used to beat me and Denise with belt buckles,

06:12you know, and that ended when she was,

06:16I forgot what we had done.

06:18It wasn't much.

06:19I think that it may have been the part

06:23where she accused me of stealing her marijuana,

06:26but she was hitting me and Denise.

06:29We were living in a single wide trailer at that point.

06:32She was hitting me and Denise.

06:33We were on the bed trying to get away from it.

06:35And Denise kicks her through a closet is what happens.

06:40And Denise stands up and she said,

06:43you're through hitting me.

06:45And that was the last time that mom hit us at that point.

06:49But...

06:50So sorry to take us there.

06:51You're, for people who know you

06:53and people should definitely watch

06:55some of your lectures online.

06:57You're extremely charismatic and fun and jolly

07:01and whatever word you want to use.

07:03But, you know, if we look at that kind of life,

07:06there's darkness there, there's a struggle there.

07:10There's a lot of darkness.

07:12So if you, how did you feel?

07:16If you go back to the mind of the kid you were

07:20with your mom, was there sadness?

07:24Was there things like depression, self doubt,

07:28all those kinds of things, or did you see this crime,

07:31this chaos as ultimately exciting?

07:34You know, I don't think,

07:36back then I didn't view it as exciting.

07:37Now it becomes exciting when I start being involved

07:40in cyber crime, all right?

07:42But back then it was simply a means to an end

07:44was all it was.

07:45So you take a 10 year old kid

07:46and the way I get involved in crime is,

07:49like I said, my mom was the fraudster.

07:51My dad was a good guy.

07:53He just forgot he was this good guy.

07:55You know, he was always, he always had these principles,

07:58but his issue was is he loved my mom so much,

08:02he was scared of her leaving.

08:04So if she wanted to do something, commit crime,

08:07cheat on him, whatever,

08:10he would pretty much just put up with it the one instant.

08:14So, I mean, this woman used to,

08:16she used to bring men home in front of him,

08:19tell him that, hey, I'm leaving you.

08:21I don't love you anymore.

08:22I want you to die, blah, blah, blah, blah, blah.

08:24This was my mom.

08:25There were two instances where the man,

08:30where he can't take it anymore.

08:33And the first instance, I was,

08:34I guess I was seven or eight.

08:36My sister Denise is a year younger than I am.

08:38My dad actually files for divorce,

08:41files for divorce at that point.

08:42My mom kind of goes crazy.

08:45My dad, I was with my dad.

08:47My sister was with my mother

08:49because that's that Eastern Kentucky mentality.

08:50You know, men stay with men, women stay with women.

08:53So he was filing for divorce.

08:57Me and my dad, we were living in an apartment.

§02Transcript · 09:00–17:07

09:00My mom was living with her grandparents

09:03and with her parents bouncing back and forth

09:05between the two.

09:07And I remember I was sleeping in the bed.

09:08We had a single wide bed.

09:09My dad slept on the sofa.

09:12I woke up one night

09:13and there was some sort of ruckus in the living room.

09:16So I wake up and I walk into the living room

09:18and my mom has a knife to my dad's throat.

09:22And basically you're not going to steal my son from me.

09:25My mom was this individual

09:26that when she knew she went so far,

09:29like I said, she was always this person that tested.

09:32What can I do this to you?

09:33And you'll still come back.

09:36She knew, she was always also this person

09:39that if she went too far, she knew it.

09:42And she would always try to divert that into something else.

09:46All right, so she knew at that point she'd went too far.

09:49So what does she do?

09:50She gets up crying, goes to the bathroom

09:53and pretends to slit her wrists

09:56so that my dad Ray will respond to that,

10:00not respond to what she's just done to him.

10:02That was my mom in a nutshell.

10:03She had a history of doing this kind of stuff.

10:07Motivations as far as fraud with her,

10:09I think with her it was, she was an LPN.

10:14She had a very good nurse, but she didn't want to work.

10:19It was a lot of it.

10:21So with her, it was easier for her to commit fraud.

10:25And when I say commit fraud,

10:26it was against businesses, against people.

10:29I remember at one point she's buying

10:31over the counter capsules and emptying the capsules out

10:34and putting some other crap in there

10:36and selling at a speed and people were buying it.

10:39She did anything she could for money.

10:41And of course I get involved with that.

10:42What happens is we were in Panama City at that point

10:46and my mom leaves my dad and the way she left my dad,

10:53my great grandfather had died.

10:55My mom tells all three of us, hey, I'm taking the kids

11:00and we're going back to Eastern Kentucky

11:01to attend the funeral.

11:02Well, that was her leaving.

11:05Me and Denise didn't know it.

11:06She didn't pack any of our clothes at all.

11:07She stows her clothes in the trunk of the car

11:11and she leaves my dad and I don't get to see my dad again

11:13for I think five, six years, something like that.

11:16My mom, like I said, she used to bring men home

11:18in front of my dad.

11:19She would, he'd sit there and cry and beg her not to do it.

11:22She'd do it anyway.

11:24When she leaves him, she kept up that.

11:28So we were living at my grandparents house.

11:31My grandfather, he had converted the house.

11:33He had raised the house up

11:34and built apartments underneath of it.

11:37So me and my sister and my mom lived

11:39in one of the apartments underneath

11:40and that whole side of the family was just nuts, was nuts.

11:45My granddad, Paul, he would,

11:49this is a man that he didn't want you

11:54to eat any of his food.

11:56So, you know, there was no such thing

11:58as me and Denise going upstairs to eat.

12:00If he found out me and Denise was taking a bath,

12:03we were allowed to bath and bathe in two inches of water

12:06one time a week

12:07because he didn't want to have to pay the water bill.

12:10There's rules.

12:10There are rules.

12:11You know, if you couldn't have the TV on,

12:14when he went to bed at night,

12:15you had to have the television, the volume.

12:17You could watch it, but without volume

12:20because if he heard it, he would get up

12:22in the middle of the night

12:23and he would kick the power breaker,

12:25turn off all the power on you.

12:26This is my, this is my, the family, right?

12:29So my mom, she used to leave me and Denise at home

12:32for days, man, for days.

12:34She'd go out and, you know, party.

12:36And I mean, sometimes she'd take me into these with her.

12:40We'd wait in the car.

12:41Sometimes we'd wait in the living room

12:43as she went and partied and everything else.

12:46Most of the time she left us at home

12:48and my entry into crime, Denise walks in one day,

12:52she's nine years old, man.

12:54She walks in one day

12:55and she's got a pack of pork chops in her hand

12:57and looked at her and I said, where'd you get that?

13:00She's like, I stole it.

13:01And you know, it's like, show me how you did that.

13:04So she takes me over

13:05and she shows me how she steals food,

13:07how she's stuffing it down her pants.

13:09So we start stealing food.

13:10I'm like, hell yeah, let's do that shit.

13:11So start stealing food.

13:13And we get to the point where we're wanting a sandwich.

13:16Well, you can't stuff a loaf of bread down your pants.

13:18So there was a Kmart in the shopping center.

13:20I go over to the Kmart, get a hoodie off the rack,

13:25take the tags off of it, wear it out, work just fine.

13:28And the way you steal bread

13:29is you put the hoodie over your shoulder,

13:31stuff a loaf of bread down the sleeve

13:32and you walk out with it.

13:34So we started doing that.

13:35How'd you figure that out?

13:36Just thought pattern.

13:38So there's like strategic thinking here.

13:43Yeah, you know, you can't wear the hoodie

13:45and put the bread down here

13:46cause you might mash the bread when you zip it up

13:48or they might notice the bread.

13:49Yeah, we have to think through that.

13:50You gotta think through it.

13:51But you gotta realize by this point,

13:53I'm already seeing what my parents are doing.

13:57You know, I'm already seeing the plotting.

13:59That kind of puzzle solving

14:01was something you were already developing yourself

14:02individually cause you're pretty young.

14:04Yeah, 10 years old, pretty young.

14:05But seeing how they act, how they respond to things.

14:08And my mom, I guess you could call it a good thing,

14:11they never kept any of that hidden from the kids.

14:14You know, there was no discussions behind closed doors.

14:17All that happened in front of everybody.

14:19And from your young minds perspective,

14:22seeing that kind of crime, you basically,

14:25you know, a lot of us kind of grow up

14:27thinking there's rules you're not supposed to break.

14:29If you see other humans breaking those rules,

14:31then you realize those rules are just human made.

14:35But it gets worse than that.

14:37I was in an environment where there were no decent people.

14:42I didn't really meet my first decent person

14:45until I was 16 years old.

14:47Who's that?

14:48That was a high school teacher.

14:49So what happens is, you know, we start shoplifting food.

14:54My mom finds out that we've been stealing stuff

14:56and you know, she joins us.

14:59What's that?

14:59She joins us.

15:00Yeah, she comes in, you know, I've got the television,

15:02I've got the Atari 2600, play the hell out of it.

15:05Oh my God.

15:05She starts seeing this shit.

15:06She's like, where'd this come from?

15:08And I'm like, well, we found it.

15:09She's like, you didn't find that.

15:10Denise, Denise stands up, we stole it.

15:13My mom, show me how you did that.

15:16And she gets her mom too, to join in.

15:19And she used to run me and Denise

15:20as these little shoplifters.

15:21We'd take, you know, we'd steal stuff for her.

15:24We would distract security

15:27and her and my grandmother would steal stuff.

15:30They got caught doing that.

15:32But that's the entry into crime.

15:34And Denise, you know, I'm adamant and I kind of mean it.

15:41But the truth is I say, and I do mean it,

15:45that I'm responsible for my choices as an adult, all right?

15:49I believe that when you're a child, you can't control that.

15:52The adults in your environment control what you do.

15:55All right?

15:55Once you're an adult though, your choices are yours.

15:58Now that being said, there's some,

16:03you can't dismiss that childhood

16:07influencing what I did as an adult.

16:10You can't do that.

16:12I mean, it was kind of written on slate that,

16:14hey, this guy's gonna be this guy when he grows up.

16:18That's like sometimes that one person you meet,

16:20that decent person can turn the tide of your life.

16:23Absolutely, absolutely.

16:24So what happens is, you know, the abuse,

16:26everything continues on, when I'm 15,

16:30my dad was in Panama City, Florida.

16:33My mom was in, you know, we were in Hazard, Kentucky.

16:38She was dating this guy.

16:40My mom was this woman that the abuse would,

16:46it was crazy abuse, man, just crazy stuff.

16:49She would tell me and my sister, you know,

16:52that she gave up her life for us,

16:55that she was gonna leave one day and never come back,

16:57that we'd find her dead in a ditch someplace.

17:00She'd go out and date these men and she'd come back

17:02and she'd talk about how these men were abusing her.

17:05You know, so she'd be dating this guy

§03Transcript · 17:07–26:24

17:07and she'd come back and she'd, you know,

17:10start talking about how he had tried to rape her,

17:13you know, trying to get me to respond to that.

17:14And I would respond to that.

17:16Make no doubt, I would respond to that.

17:18Well, what happens is, and I knew that,

17:21I don't know if I knew it was abuse at that age, all right,

17:23but I knew things were fucked up.

17:25And I was talking to my dad in Panama City

17:29and I really had it in my head

17:30that I was gonna go down and live with my dad.

17:35And I called my dad one day.

17:40I was set to go to, me and my cousins

17:42were gonna go see Return of the Jedi.

17:45It had came out again in the theaters.

17:48So I called my dad, it was a Sunday,

17:50called my dad and he told me,

17:52he had either gotten married

17:54or he was about to get married to this woman.

17:56And basically Brett Johnson

17:59wasn't gonna go down to Florida.

18:01You know, I was gonna stay in Hazard.

18:03I had to call my dad from payphone,

18:05but the result of that was I walked him into a hospital,

18:11got in an elevator and a woman got in the elevator

18:15at the same time and I snapped

18:18and beat the hell out of her right there.

18:21And I was 15, didn't really know what the fuck happened.

18:27Didn't really know, but.

18:29Just anger came from somewhere.

18:30Yeah, yeah.

18:32And you know, the elevator,

18:37beat the hell out of this lady.

18:40Turned out she looked a shitload like my mom,

18:43but the elevator doors open.

18:48And one of the security guards,

18:51I played basketball with his son.

18:53So he saw me immediately.

18:55I knocked the hell out of him, took off running,

18:58made it back to the house where my grandparents were.

19:02They didn't know what had happened.

19:04So I didn't say anything.

19:07About an hour later, Kentucky state police,

19:10they pull up in the front yard and two of them get out

19:13and I'm sitting on the front porch and me and my cousins are

19:16and they start walking up where everybody starts walking

19:18out of the house.

19:19And I'm like, I just remember saying, what do you want?

19:21What do you want?

19:22Well, you know what they wanted.

19:23They wanted to arrest Brett Johnson and they arrested me.

19:27I went in and I told them everything.

19:31Spent three months in a county jail.

19:33They didn't have juvenile facilities in that county.

19:37So I spent three months in solitary, went to trial,

19:42pled guilty to assault in the first degree.

19:44The judge sentenced me to time served

19:48and a psychological evaluation

19:50where they sent me to Louisville, Kentucky.

19:54Spent 30 days up there and they cut me loose.

19:55They wanted me to have counseling after that

19:59and never went to counseling.

20:02You know, I wanted to, but mom was like, don't need it.

20:05And so never went to counseling.

20:08And I became this pariah in the county. It's crazy, man.

20:16I mean, not a day goes by that I don't think about that.

20:21That moment in the elevator.

20:23Yeah.

20:24And what happens is, you know, you're 15.

20:29Fuck man, you're 15.

20:31So I go back to the high school that I was in

20:34and I'm this piece of shit.

20:38So everybody, you're not the outcast.

20:41Everybody knows.

20:43So I moved, we moved, we were in Whitesburg at that point.

20:47I finished up the year there and moved back to Perry County,

20:52which is where Hazard is.

20:55So we moved there and they've got three high schools here.

20:57They've got MC Napier, they've got Hazard High School

21:00and then they've got Dills Combs High School.

21:02So I was within, me and Denise were within

21:07half mile of MC Napier.

21:10Show up there the first day of school

21:13and I met me and my mom and my sister

21:16were walking into the school and the kids won't let me in.

21:20The kids stand out there, he's not coming in.

21:26So my mom starts raising hell and I'm like,

21:29nah, let's just go, let's go.

21:30So from there it was, we went down to the city school,

21:33Hazard and the principal tells my mom,

21:36Denise can come, he can't.

21:40So my mom wants to raise hell and I'm like, no,

21:43let's just take me to this other school.

21:45So this other school was like 15 miles away

21:48and country high school.

21:55So I go there and they accept me

21:57and I walked in the first day

21:59and this English teacher

22:04name's Carol Combs, I walked in

22:07and handed her the paper, she was my homeroom teacher

22:11and she heard this voice,

22:14that is the way she explains it today,

22:15she heard this voice and she looks up

22:19and she was like, son, have you ever done any drama before?

22:24And I'm like, no maam,

22:27but I'm interested in the academic team,

22:29I was this quick recall guy, right?

22:31And she's like, no.

22:33She's like, drama.

22:37I'm like, no, I'm not interested in theater,

22:39I'm interested in academics.

22:41Well, she was the head of the drama department

22:44and head of the academics department.

22:46So the deal was, tell you what,

22:48you can get on the academics team

22:50if you start with theater too.

22:53And I was like, okay.

22:54So what happens is she was the only,

22:56she was the first decent person I met in my life

22:58and she became this kind of surrogate mother to me.

23:01So under her tutelage,

23:04I become one of the top academic team guys in the state.

23:09Around there, I was captain of the team,

23:11I was this just scourge across all the counties

23:15in that part of Kentucky.

23:16If we had a meet, it was like,

23:20Jesus Christ, that's Brett Johnson.

23:21And it was like, she used to tell people

23:26they would, the high school that I came from was Whitesburg

23:29and the first time that Whitesburg came against us,

23:32she told me, I was talking to her about a year ago

23:35and she told me, she's like, Brett,

23:37she said, that first meet against Whitesburg,

23:40she said, the captain came in, looked at you and said,

23:45oh, you've got that Johnson boy on your team?

23:47And she said, my response was that Johnson boy is our team.

23:52So, but I did that and then with theater,

23:57I ended up, my senior year,

24:00I won best actor and actress in the state.

24:04Only guy to ever do that in the state.

24:05So, did pretty well, man, did pretty well.

24:08Had scholarships coming out of high school

24:11and everything else and I'm the idiot that turned them down.

24:14Ask you a funny question.

24:15Yeah.

24:16You'd make a hell of a, I mean,

24:18of all the many things you could probably do,

24:20you would make a hell of a actor.

24:23I'm very good on stage.

24:24I'm very good on stage.

24:26Have you acted professionally anywhere or not?

24:28Not professionally.

24:29We've done the college circuit and stuff like that.

24:31What happened was is, so I turned down the scholarships,

24:38you know, scared of leaving, I guess is what it was.

24:40Started in community college

24:41and the community college there hires

24:44a new theater director out of California.

24:46Well, he knew the guy

24:48that ran the San Jose State Theater program.

24:50A guy named Edward Emmanuel was his name.

24:53His claim to fame, he had written the Three Ninjas movie.

24:56Remember that, the three little ninja kids

24:58back in the eighties, he had written this damn film

25:00and it had made a shitload of money.

25:02So, he invites Ed Emmanuel to come down and see the play

25:06and Ed had written this Civil War piece.

25:09So, we put that on.

25:11I was doing like, it was a multiple role thing.

25:13I was doing like 18 different roles in the show.

25:16So, Ed sees the show and he was like, scholarship.

25:19He said, look, he said,

25:20right now you're a big fish in a small pond.

25:22We'll make you a big fish in a big pot.

25:24And I was like, deal.

25:25So, I took the scholarship, man.

25:27And he was like, I'll be back in two weeks.

25:29So, he flies out.

25:30Two weeks later, this guy flies back in.

25:32He drives down to where I'm living.

25:35I'm out shooting ball with one of my cousins and friends.

25:39He pulls up and he gets out of the car

25:42and I was like, I'm walking over to him.

25:43I was like, hey man, I'll walk you in.

25:45You can meet my parents.

25:47He's like, no, I got it.

25:48I was like, okay.

25:49So, I keep shooting ball.

25:50He walks in the house, stays about 15 minutes,

25:54walks out, white as a sheet, doesn't say a word to me,

25:58gets in the car, leaves.

26:00I don't hear from him again.

26:02Had no idea what went on.

26:04Takes me a couple of weeks.

26:06What happened is my mom, he walks in and introduces himself.

26:10My mom pulls a knife on the guy.

26:13I will kill you.

26:14You are not going to steal my goddamn son from me.

26:17Scares the guy to death.

26:19He bugs out and kind of broke my spirit at that point.

§04Transcript · 26:24–34:09

26:24I was like, okay.

26:27So, went into, just full fledged into scams,

26:32crimes, everything else.

26:34I had already been, when I was a minor,

26:37I'd already been kind of brought up

26:39on that side of the family with the crimes

26:40that they were doing.

26:41My mom was drug trafficking, the pimp stuff,

26:45illegally mining coal, charity fraud.

26:48Illegally mining coal?

26:50Yeah, wildcatting coal.

26:51So, you...

26:52Can you explain that?

26:53Yeah, so, to properly mine coal,

26:55you have to get a permit, all right?

26:58Eastern Kentucky, a lot of people don't,

27:00they can't afford the permits.

27:02They can get them a piece of equipment.

27:04You get a dozer or a loader or whatever you're going to get

27:06or an auger or what have you.

27:08So, you start mining, but you don't get the permit.

27:10So, you don't have to do the, you don't have to pay.

27:12Back then, it was like $3,500 for a two acre permit

27:15or $5,000 for a two acre permit.

27:17Let you strip mine the coal on that.

27:20Then you have to pay for the reclamation on top of that.

27:22So, once you uncover the pit, take the coal out,

27:25you have to cover back up the pit, sow grass,

27:28make sure everything is environmentally friendly.

27:30You got a silt pond, everything else at that point.

27:32So, the whole idea is you buy an acre of land

27:35or some area of land and then you can,

27:36there's a whole process you're supposed to go through.

27:38Entire process.

27:39How many people involved in a mining,

27:41the smallest number of people required

27:43for a mining operation?

27:45You can do it with three or four people.

27:46Okay.

27:47So, you've got your loader operator,

27:48you've got your dozer operator.

27:49You need, you can farm out the trucking to someone

27:52if you need that or trucking company if you need to do that.

27:56Then you've got your, whoever owns the business as well.

27:58So, very few people can run an operation like that

28:01and profit fairly well as long as

28:04you don't have to do the reclamation,

28:07all that crap on top of it, all right?

28:08The reclamation gets pretty expensive.

28:10So, if you're uncovering a pit of coal,

28:14a pit, so a ton of coal is basically about 36 cubic inches

28:18is what a 2000 pounds of coal weighs

28:20if you're in Eastern Kentucky

28:21because it's at the weight of the bituminous coal

28:24and everything.

28:25The fact that you know this is awesome.

28:26The fact that you know exactly the volume

28:32of a ton of coal, I mean, it's great.

28:34Yeah, you learn this shit, right?

28:35Can you rattle this shit off?

28:36So, you uncover the pit and then you've got to sell the pit.

28:40Well, the thing is, is that,

28:41where are you gonna sell the coal?

28:43Well, you sell it to one of these other coal tipples

28:45that knows that they're buying the shit illegally.

28:48So, back then a ton of coal was,

28:50they'd give you like 36 bucks per ton is what that is.

28:54And you'd have to go out and you'd test the BTUs on it.

28:56You take a sample to the lab, test the BTUs,

28:58you take that into the company.

28:59What BTU?

29:00British Thermal Unit.

29:02So, you'd test what the BTU on the coal was.

29:04How pure the coal is.

29:05How pure the coal is, what BTU it burns at.

29:08Back then, a good BTU was around 12.9

29:12was what you'd get, all right?

29:14So, 12.9 coal, $36 a ton.

29:17You'd take that sample over to the coal tipple.

29:19They'd say, okay, we'll buy this for you.

29:21How many trucks you got or how many tons you got?

29:23And you'd say, this is what we've got.

29:24Then you'd hire the trucking company.

29:26And where you get it out because you've got the agents

29:29that are looking for you by this point

29:32because the people that you've bought the rights

29:36to whoever the landowner is,

29:37you said you're gonna give them $2 a ton or whatever this is.

29:41Well, the other people there,

29:42are you paying them off or are you not?

29:45Well, if you're not paying them off, guess what?

29:47They know your ass is mining it illegally.

29:49They're gonna report you.

29:50Well, all of a sudden, you've got all these inspectors

29:53that are coming around and everything.

29:54Hey, we know what you're doing.

29:55So, they're looking for you to get the pit out.

29:57So, when do you get the pit out?

29:58Right in dead of night.

30:00So, you're loading it up two o clock in the morning,

30:02hauling this ass out is what you're doing.

30:04You sell it out from there.

30:06So.

30:07And your mom ran operations like this?

30:08Yeah, yeah.

30:10And you said you worked the mine too when you were younger?

30:12Yeah, I learned how to run a loader, run a dozer,

30:14learn how to clean off a pit, everything like that.

30:18So, this is the lifestyle you grow up in.

30:22You learn how to do this stuff.

30:23And so, I knew how to do charity fraud as well,

30:27insurance fraud, so.

30:28Charity fraud.

30:29Can we break down some of these?

30:31Charity fraud, it's much more romantic than what it sounds.

30:34It was basically, it was basically standing beside the road

30:39with a sign and a bucket taking up collections

30:42for homeless shelters, for abused women,

30:44for children, stuff like that.

30:47Then later on, I branched off.

30:49When I started off on my own,

30:51I would set up my own charity company

30:53and do some telemarketing and go on by

30:55and collect checks and things like that.

30:57We're gonna talk about that.

30:58But actually, can we just step back

30:59and talk about your mom and your dad?

31:04Given all of that, given all the abuse,

31:08the complex ways that she played with love,

31:12to see how far she can push you and the people around her,

31:15and they still love her.

31:18Today, do you love her?

31:20You know, I called my dad yesterday.

31:22My dad, he's dying now.

31:24He's got a heart condition.

31:25He's not gonna get the operation to fix it.

31:27So he's like, fuck it, I'm ready to go.

31:29And I'm like, I looked at him,

31:30because hell, I'm 52 now.

31:32Prior to 52, I'd have been like, no, you need to do this.

31:35But I looked at him and I was like, I understand.

31:38I understand.

31:39You're done.

31:40And so he's not gonna get the operation.

31:42I was talking to him yesterday and he asked me,

31:44he's like, have you seen your mom?

31:45And I was like, dad, I've not talked to her

31:47for about two years.

31:48And I told him, I was like, I love my mom,

31:52but my mom is not a good person.

31:54She's not.

31:55And he told me, I was talking to him on the phone yesterday,

31:59and he told me that it took him several years

32:01to really understand that.

32:03You know, he loved her too,

32:04but it takes, when you're getting abused like that,

32:07especially my dad, my dad came from a good family,

32:09everything else, and, you know, upstanding family.

32:13And I think that when you're that victim of abuse,

32:18you know, you've never seen it before,

32:20you've never encountered it, and then it happens,

32:23well, you're like that frog in water all of a sudden.

32:25You know, you get to the point where it gradually increases

32:28until how do you get out of it?

32:30Everybody else sees what's happening, but you don't.

32:32I grew up in that environment though, you know,

32:34so it took me a long time to come to terms with that.

32:39My sister came to terms with it long before I did.

32:42You know, my sister, she's been a decade

32:44without talking to my mom,

32:45like she had tried to commit suicide, I didn't know that.

32:48What got me so bad is she said at one point

32:51that she always thought someone was gonna come in

32:55and save us, and my response, just immediate response,

32:58not even thinking about it, my response was,

32:59well, Denise, I knew no one ever was.

33:02And looking at things now,

33:06I think that's where our paths diverged.

33:10Me, it was, if you wanna do it,

33:13if anybody's gonna take care of you,

33:14you gotta take care of yourself.

33:15You're on your own.

33:16You're on your own, you know, it's up to you.

33:20And Denise has always been that child

33:24that has expected someone to come in and save her.

33:27Well, and almost like it's all going to be okay, somebody.

33:31Yeah, and I knew it wasn't.

33:33No, no, you go.

33:34Unless you.

33:35Unless you make it okay, it ain't gonna be okay.

33:38So, you know, I was.

33:40Are you able to forgive her, your mom?

33:45My boundary with my mom, the reason I've not spoken with her,

33:49over two years ago, I started this legal career of mine.

33:55I've been the guy who has,

33:57I spent a lot of time thinking about my past

34:01and those choices and what brought those choices around.

34:04So I'm big about taking responsibility for my actions.

34:06I truly am.

34:07I think it's really important you have to do that.

§05Transcript · 34:09–42:56

34:09Well, my mom, not so much.

34:12So I was talking to her, you know,

34:14and I would start saying, you know,

34:16she would start the conversation talking about,

34:19she didn't understand

34:20why Denise wouldn't speak to her anymore.

34:22That was one of her tropes.

34:24So, and my response started to become,

34:26well, because you were the abuser

34:28and you spent your life doing that to her.

34:31So it's more healthy for her not to talk to you.

34:34So she's still not able to see the flaws

34:37in her ways of the past.

34:40No, not at all.

34:41So my ultimatum to my mom was, look,

34:44when you're able to admit

34:46that you abused the people in your life,

34:49accept that responsibility

34:51and be able to discuss it with me, we'll have a talk.

34:55Other than that, I don't want to talk to you anymore.

34:58So for the first year it was, you know,

35:00calling, cussing my wife out, cussing me out,

35:04you know, I don't need you, blah, blah, blah, blah, blah.

35:07And then finally it started to taper off

35:09and she's never really contacted me after that point.

35:12And your dad is dying.

35:18What do you take from the way he's taken on death?

35:21Just saying, fuck it.

35:22You know, it's the man.

35:25And what have you learned from your dad?

35:27What do you love about your dad?

35:30He's one of these guys that, you know, like I told him,

35:34I told my dad about the abuse and everything else.

35:37And there was a point.

35:39So, you know, I told you about the elevator stuff,

35:41but before that, man, it was,

35:44it took me 40 years to talk about that,

35:47but it also took me 40 years to talk about,

35:53there was a point that my mom and dad would leave the house

36:00and I would urinate in the floor.

36:03All right.

36:04And...

36:05Is that like out of anger?

36:09No, no idea why.

36:11All right.

36:12But I would.

36:12Piss on the carpet.

36:13Carpet pissers like the Lebowski, right?

36:18It really tied the room together, dude.

36:20It really tied the room together.

36:22I was talking about that

36:22and this lady comes up to me after the presentation

36:26and she had a career previous to that

36:29where she dealt with abused kids.

36:31And she told me, she was like,

36:32Brett, she's like, it's a control mechanism.

36:37The only control you had was that.

36:40And she's like, kids do that.

36:42And I was like, so I'm not unique.

36:43She's like, no, you're not unique in that.

36:45So that, you know, this whole history of abuse,

36:49Denise dealt with it by drinking,

36:51by trying to commit suicide, things like that.

36:55And then finally she escapes.

36:56I'm the kid that didn't.

36:57And not only that, my wife pointed out to me that,

37:00again, it's that Eastern Kentucky mentality stuff.

37:02You know, the male's expected to do things.

37:04So with me, it was almost like I stepped up

37:09to take part in those crimes

37:12so that Denise didn't have to.

37:14And she was able to avoid all that.

37:16Other than that one shoplifting stuff,

37:18Denise doesn't break the law anymore.

37:19She goes off to be a, she's a good parent.

37:22She's an angry parent.

37:24She's a good parent.

37:24She's a teacher, a good citizen overall.

37:27I was just the guy that kept right on going with it.

37:30Kept on going.

37:31So let me ask you about that.

37:32So your life of cyber crime.

37:37In describing some of the things you did or knew about,

37:40you said, quote,

37:41"'I once stole several thousand dollars worth of coins

37:44"'from a family trying to sell them

37:47"'to put a new roof on their home.

37:48"'Another time, I sent a counterfeit cashier's check

37:52"'to a victim and he ended up being arrested for it.

37:55"'I lied to family, friends, everyone I knew.

37:58"'I was a truly despicable person.'"

38:01True.

38:02"'One of my Ukrainian associates script

38:05"'had someone who owed him money kidnapped and tortured.

38:08"'He posted pictures of it online.

38:11"'Another member, Iceman,

38:13"'used to flood his enemy's email addresses

38:16"'with child pornography, then called the police on them.'"

38:19That's some stories.

38:20Can you tell some of these stories that stand out to you

38:23that are particularly despicable or representative

38:29or interesting when you look back

38:31that defined your approach and who you were at that time?

38:36Let me say that I did not care about my victim, all right?

38:41I cared about me, is what I cared about.

38:45It's rough to admit that.

38:50You don't give a shit what you're doing to anybody else,

38:51you only care about you.

38:52But that's the truth of the matter.

38:54I didn't care about the victims.

38:56The lady, that wasn't even at the beginning of my career

39:00as a cyber criminal, that was right at the last of it.

39:03Which lady?

39:03The coin lady.

39:05By that point, Shadow Crew had made

39:07the front cover of Forbes, August of 04.

39:10October 26th of 04, Secret Service had shut us down,

39:1333 people arrested, six countries in six hours.

39:16I was the guy that was publicly mentioned as getting away.

39:20What happened was is I was the guy who was,

39:23I had kind of invented this crime

39:25called tax return identity theft

39:27and was stealing a lot of money.

39:30I went through all my stateside savings

39:33and Shadow Crew gets shut down.

39:35I don't have any way to come in with any money,

39:37so I start running counterfeit cashier's checks,

39:40defrauding people with that,

39:42having them send products or bullion collections,

39:45what have you, by COD, collect on delivery,

39:48and I would pay with it

39:49with a counterfeit cashier's check.

39:51This lady was on eBay.

39:54She had been collecting these silver coins all of her life.

39:57You know, the U.S. currency used to be,

39:58the coins used to be silver,

40:00so she had a whole collection of these things,

40:02like, I don't know, 80, 90 pounds of this stuff,

40:05and I'm a very good social engineer.

40:10So, convinced her that I was a legitimate person,

40:13that, you know, hey, send it to COD,

40:16you can use my FedEx account to do that

40:18or my UPS account to do that.

40:20I'll pay with a cashier's check,

40:23you can take it in, same as cash.

40:25She believed that, she was, even on the ad,

40:28and we talked on the phone and everything else,

40:30she had told me that she was a single parent,

40:33and it was the only money that she had

40:34to put a roof on the house for her and her kids,

40:39and I didn't give a damn.

40:41I didn't give a damn.

40:42What was more important was me at that point.

40:44Can I ask you a question about the social engineering aspect?

40:46So maybe specifics like the methodology,

40:50email, you said phone,

40:52maybe you could discuss this process

40:57from a bigger philosophical perspective

41:00of what is it about human beings

41:03that makes it possible to be social engineer,

41:06to be victims of fraud?

41:09So, first let me say that I became a social engineer

41:15as a child, all right, because the adults in my environment,

41:20as a child, I had to know exactly what they were thinking

41:23and be able to try to manipulate that for survival.

41:26So I became a social engineer for survival initially,

41:30all right, and one of the things that I've seen

41:32with a lot of cyber criminals is the exact same thing.

41:35They're really expert ones.

41:37They become a social engineer as a child,

41:38then later on, they use those tools to victimize others.

41:42Which is fascinating because you're,

41:44in order to understand what others are thinking,

41:46you have to be extremely good at empathy.

41:49So you have to like really put yourself

41:51in the shoes of the other person.

41:53And yet, in order to do cyber crime,

41:56you have to not care about the pain

42:00that might cause them once you manipulate them.

42:03So you have to empathize and yet not care.

42:06Exactly, and I would argue,

42:08I would argue that that is not a sociopath

42:11because a cyber criminal, and I was no different,

42:13most cyber criminals justify those actions.

42:15So the justification becomes what's important.

42:18With me, the justification was why I did it for my family,

42:21did it for my wife, did it for my stripper girlfriend.

42:24So, and I believe those justifications.

42:25That's a good story, I heard that one.

42:26Yeah, so.

42:27I like that, because I care about love a lot.

42:28Yeah, so the big picture of that is trust.

42:35How do you establish trust with a potential victim?

42:40All right, now I would argue online

42:42that that trust is established through a combination

42:44of technology, tools, social engineering.

42:47All right, so we trust our tech.

42:50We trust our cell phones, we trust our laptops.

42:53A lot of times we don't understand how they operate,

42:55but we trust the news that comes across the line.

§06Transcript · 42:56–51:07

42:56We trust the phone numbers that show up.

42:59We trust IP addresses if we're advanced enough

43:02to look at an IP address or a domain

43:04or anything else like that.

43:05Criminals use tools to manipulate that,

43:07spoof phone numbers, spoof browser fingerprints,

43:11whatever that may be, whatever the tool may be.

43:14Then that lays a base level of trust.

43:16At that point, you shoot in with the social engineering

43:19and lay whatever story that is in order to manipulate

43:22that victim to act not out of reason,

43:25but out of emotion all of a sudden.

43:27This is fascinating about the way humans interact

43:31with the world, which is you're almost too afraid

43:34to not trust the world.

43:35You have to find a balance.

43:36You have a lot of conspiracy theories now

43:40about distrusting institutions and thinking

43:42like everything around us.

43:44It's like I've been listening to people

43:46who believe the earth is flat.

43:48And that conspiracy theory is fascinating to me

43:52because it basically says that you can't trust anybody.

43:57Like everything you hear is a lie.

44:00So that's one, you can live that life

44:03or you can live a life

44:04where you're just naively trusting everything.

44:06And we as humans have to,

44:08because that life is kind of full of happiness

44:11if nobody screws you over.

44:13Cause you meet people with the joyful heart

44:16and you get excited and all that kind of stuff.

44:18But if you do that too much, you're gonna get burned.

44:21So you have to find some kind of balance

44:23in terms of optimizing happiness where you trust,

44:28I mean, but verify and on the internet

44:32that becomes really tricky.

44:34You're almost too afraid to distrust everything

44:36cause you'll never get anything done on the internet.

44:38But then if you trust too much, you can get screwed over.

44:41And so the social engineering comes in where you're like,

44:45I'm not sure if I should trust this.

44:47You kind of help them build the narrative

44:50where it's like, it's good.

44:51It's good.

44:52It's good.

44:53So in a lot of the times that social engineering

44:55is just feeding into what the victim wants to believe.

45:00All right.

45:01It's not really coming up with a brand new story at all.

45:03It's just knowing what that victim is,

45:05what the motivations of that victim is

45:07feeding into it at that point.

45:08So you have to, again,

45:10that social engineer has to almost immediately know

45:14what's driving that person that they're talking about.

45:16If I'm working on a phone,

45:18talking to someone over the phone,

45:19I have to know within seconds what I need to say,

45:22how I need to act to interact

45:23with that customer service agent

45:25or whoever I'm talking to on the other end of the line.

45:28So fascinating because you truly are empathizing

45:31with the other person.

45:32Absolutely.

45:33Who is it?

45:34This business man, Steven Schwarzman.

45:36And I've talked to a few times.

45:40He mentioned this thing that,

45:44the way you build deep relationships

45:45is you really kind of notice

45:49the things that people are telling you.

45:51Like what they want and what they're bothered by,

45:56what are their big problems in their lives?

45:58Because everybody's saying that all the time

46:00and most of us are just ignoring it.

46:02Right.

46:03But if you take the time to listen,

46:05you know somebody at that point.

46:07Yeah.

46:07Absolutely you do.

46:08Then you have to be able to dismiss it.

46:10You have to dismiss it after.

46:12You're looking for that just to see

46:14how I can manipulate that is what you're trying to do.

46:17So the lady was one story,

46:20another truly despicable story.

46:22We'll get to script in a second.

46:23But another truly despicable story.

46:25We were one of the really first groups

46:28that started phishing attacks.

46:30What's phishing?

46:31So that is a social engineering attack.

46:33PH by the way.

46:34Yeah, PH.

46:35That's another social engineering attack.

46:36That's sending that fake email out

46:38that looks like it's coming from a website

46:40or your financial organization or whatever

46:42and saying, hey, we've got a security problem.

46:44We need you to update your account information.

46:46Well, back then no one had ever seen a phishing attack.

46:50So you could ask for all the information.

46:53You were getting just complete identity profiles

46:56on a phishing email.

46:57Nowadays you can't do that.

46:58Nowadays you look for basically credentials

47:00because everyone is aware of phishing.

47:02But back then it was complete information.

47:03We had phished out, I don't know, 200,000 eTrade accounts.

47:08That's what we had the login credentials for.

47:10The login password, yeah.

47:11Login password, complete social, date of birth,

47:13mother's maiden account information, everything else.

47:17So we had access to those eTrade accounts.

47:20eTrade initially had no security in place.

47:24So you could cash out the account,

47:26ACH the money out to whatever account you wanted to,

47:29went through just fine.

47:31Made them alive on that for four to six months.

47:34eTrade got to the point where you couldn't

47:38do any ACH coming out.

47:41They locked everything down.

47:42Well, you're still sitting on thousands of eTrade accounts.

47:46How do you make money on that?

47:50That's a good question.

47:51So what you do is you find some fat cat that's

47:53got his retirement invested in blue chips.

47:57Same time you find a penny stock,

47:59you open up a brand new account, buy into that penny stock,

48:03cash the fat cat out, buy into that same penny stock,

48:06bump and dump schemes all of a sudden.

48:08So you're destroying people's retirement accounts

48:11for just a few thousand dollars.

48:12Bam, bam, bam.

48:14And of course, eTrade's response is, not our problem.

48:17It's your problem.

48:18You shouldn't give up your password

48:19or what have you at that point.

48:21And you still see that issue today with Zelle scams

48:24and things like that.

48:25Which scam?

48:26Zelle.

48:26So you know, the instant payment that they have.

48:28So it's the same kind of operation,

48:29same type of difference with different payment mechanisms.

48:32You find an easy way to exploit a system,

48:35and typically the financial organization, not our problem.

48:39Our system's secure, it's the humans, it's their errors.

48:41Well, not really.

48:43You know, you've got some culpability in that,

48:45and you're just trying to avoid paying the part of the bill

48:49is what's going on.

48:50One of the things, just to stand fishing for a bit,

48:52is it really makes me sad because there's been people

48:57on all kinds of platforms, including YouTube comments,

49:00but emails too.

49:02They figured out emails somehow.

49:04So people are now seeing the followers

49:11of this particular podcast who are fans,

49:13they're finding them on platforms like LinkedIn and YouTube

49:18and so on, and they are figuring out

49:20ways to get to those people by another channel, which

49:24I suppose seems more authentic to those people.

49:29So they send them an email from what looks like me,

49:34and with this kind of loving message.

49:37The interesting thing, the emails

49:39sound like something I would write.

49:41So these aren't even, at this stage, it's not even,

49:44it doesn't feel automated.

49:46Or if it's automated, there's a human in the loop

49:49that's really fine tuning it to a specific,

49:52or maybe I'm very predictable.

49:53But it's very loving in the way I would write that message.

49:58So think about that, all right?

49:59So when Phishing first comes out,

50:02you could look at the language of the text or the website

50:04and say, eh, if you were paying attention, that's so OK.

50:07So that's not an English speaker who wrote that, typically.

50:11But as time has went on, as the awareness of what a Phishing

50:15attack looks like, we have people

50:17that are sitting down now and making sure

50:19that the language is proper.

50:20It gets worse than that, though.

50:22If you look at business email compromise,

50:24so the way a business email compromise typically works

50:26is the attacker will find a payroll person, find a CEO.

50:31He will fashion a spear phishing email, which

50:34is that's a Phishing attack that's targeting

50:36one specific individual.

50:38So he'll fashion a spear phishing email.

50:40And the way he does that is he pulls all the information

50:43he possibly can on that person, that CEO.

50:49Maybe he'll spear that CEO just to get their login credentials

50:55to their email, just to read the emails.

50:58And he'll go in there, and he'll start

50:59reading all these emails.

51:01He'll specifically read the emails to the payroll

51:04department, see what that relationship is.

51:06Are they talking about their kids,

§07Transcript · 51:07–1:00:07

51:07talking about relationships, talking about vacation?

51:09What are they talking about?

51:10How are they talking?

51:11Are they friendly?

51:12Are they sterile?

51:13What are they doing, all right?

51:15So then he decides, well, I'm going to go ahead

51:17and spear phish the payroll department as well.

51:20So then he spear phishes in, gets those credentials.

51:22At the same time, he creates a Unicode domain

51:25in whatever the company name is, all right?

51:27So instead of that English alphabet I,

51:29he's got that Russian letter that looks like an I

51:32but without the dot on top, all right?

51:35Comes back into the email, into the payroll email,

51:38blocks the real CEO's email, replaces that with the Unicode

51:42email that he's got, and then sends out a message

51:47using the correct language, the correct relationships,

51:50everything else, and says, hey, we're updating

51:52our account status, I need you to send this payment

51:55instead of over here, they've set up a new account,

51:58send all payments over here now.

51:59And that is business email compromise in a nutshell,

52:02all right, works great.

52:04Probably the larger the organization,

52:06the more susceptible to that kind of attack

52:10because there's like a distribution of responsibility

52:14to where you're more likely to believe that,

52:16okay, this other person is responsible,

52:18I'm sure they secured everything.

52:21I'm okay listening to this.

52:24So that's business email compromise,

52:25and those crimes, and that's one of the things

52:27you see about cybercrime.

52:28Cybercrime's not really sophisticated.

52:30It's not, the attacks are not sophisticated.

52:32The stat is 90% of every single attack uses a known exploit.

52:37It's not zero day attacks, they're out there,

52:41but if you're a criminal waiting on a zero day to profit,

52:43you're gonna starve to death.

52:45The meat and potatoes are that 90%, known exploits.

52:50And then the rest is, well, you're saying it's,

52:54maybe you mean it's not technically sophisticated,

52:56but it's social engineering sophisticated.

52:59Very sophisticated on that end, very sophisticated.

53:01I mean, it's a fascinating study of that.

53:03That establishment of trust and then using that trust

53:06to defraud that victim.

53:09That is something.

53:11I wish, obviously, all of these folks

53:14are really good at hiding.

53:16I wish you could tell their stories in a way,

53:19which is why you're fascinating,

53:21is you're able to tell these stories now,

53:22because it is studying human nature by exploiting it,

53:28but you get to understand our weak points,

53:30our hope, our desire to trust others.

53:35Also, the weak points and the failures of digital systems

53:42and at scale, humans have to connect.

53:46It's fascinating.

53:46This is a weird question, asking for a friend.

53:52Is spear phishing itself illegal?

53:54What's the legality here?

53:56Oh, it's all illegal.

53:57Absolutely it is.

53:58Is it?

53:59Absolutely.

53:59So here's what, okay, let me construct an example.

54:02So if my friend were to spear phish like a CEO, right,

54:10and get their information and after they get control,

54:14say, of their Twitter account,

54:16they tweet something loving and positive, what's the crime?

54:21Unauthorized access of advice.

54:23What will be the punishment, do you think?

54:27That becomes questionable.

54:29So no monetary loss, or was there a monetary loss?

54:33Probably not, all right?

54:34So you have to figure out who the victim is

54:37before charges are pressed.

54:38Now, the crime would be unauthorized access, all right?

54:42But no real victim on that,

54:45unless the person whose account you took over

54:48takes exception to that.

54:51No monetary loss.

54:53So there's not really standard fines.

54:55Probably nothing's gonna happen, right.

54:56Right, right.

54:57So, I mean, that's kind of interesting,

54:59because it's, so when I got the ransomware,

55:04when I got the zero day attack on the QNAP mass,

55:09they basically say the criminal is QNAP, the company,

55:17for having so many security vulnerabilities.

55:20They're like, you are the victim of QNAP's incompetence.

55:25That's the way they kind of phrase it.

55:27And see, I don't agree with that.

55:30I don't agree with that at all.

55:31So, SolarWinds.

55:33Yeah.

55:34Let's, so I've got 130 page class action lawsuit

55:41printed out at the house, I've been going through it,

55:43that catalogs how SolarWinds lied for years

55:47about their vulnerabilities, and they lied to investors.

55:49The people who came in, the honorees who they would hire,

55:53would, you know, they would not pay attention to them

55:57when they said, you know, you've got these issues,

55:58they would say, go away, shit like that for years,

56:01until SolarWinds, you know, the attacks become apparent.

56:07My view on that is that the only person

56:10responsible for the crime are the criminals

56:14who did the attacking, the actual criminals, not SolarWinds.

56:18Now, does that mean that SolarWinds isn't all fucked up?

56:21They are, and there needs to be some accounting in place.

56:25But the only individual, the only people responsible

56:29for crime are the criminals, and that's either online,

56:33in the physical world, what have you.

56:36Being an idiot is not a crime.

56:39Not a crime.

56:40You know, being criminally negligent is,

56:45and I think that SolarWinds is certainly responsible,

56:48not responsible, they're culpable for what happened.

56:52Can you actually tell folks about SolarWinds?

56:55What is it, what are some interesting things

56:59that you're aware of?

57:00SolarWinds was very, it provided a backbone of security

57:05for hundreds, thousands of different companies.

57:12If you looked at, a lot of security companies

57:14were using SolarWinds that would allow you

57:16to get a snapshot of the entire system

57:19that they were working on.

57:20So what happens is, is you get a Russian group that comes in

57:24and they basically, they hack into SolarWinds

57:29and get access to it, and it allows them

57:31to view every single thing, I mean, every single thing

57:37about every single client that SolarWinds had at that point.

57:42So entire snapshots of all the IP that was going on,

57:46all the emails, all the communications,

57:47every single secret that was going on with those companies.

57:50If a company had software like Microsoft,

57:53it allowed them to look at the source code

57:55of everything that was going on.

57:57I mean, it's just a complete and total nightmare, all right?

58:01And something that you are not going to recover from.

58:05You're not.

58:07I mean, it's done at that point.

58:08You know, there's not been a lot of news lately about it,

58:12but the fact of the matter is, is that's the type of attack

58:15that's a catastrophic attack.

58:16So there's a huge amount of information

58:19that was read, saved elsewhere probably.

58:22Oh yeah.

58:23And so now there's people sitting on information.

58:26Absolutely.

58:27So think about one of the attack vectors

58:28has been Microsoft Outlook 365, things like that.

58:32This allowed the attackers to look

58:34at the source codes of that.

58:36So they have the source code now,

58:39so they go through it line by line.

58:41Where are the vulnerabilities?

58:42Let's find new vulnerabilities, new zero days.

58:44You know, I said zero days aren't common,

58:46but this opens up an entire new threat surface

58:49all of a sudden.

58:50So it's a completely catastrophic attack.

58:52Once all the chips are down, everything's tallied up,

58:54people are going to be like, yeah, we're done.

58:56We're done.

58:57Yeah.

58:58All right, this whole computer thing,

59:02we tried it and we're walking away.

59:04We're done.

59:05That's terrifying.

59:07So you're saying that there's not been obvious

59:11big negative impact from that yet.

59:14So, but like.

59:15There's been a lot of negative impact,

59:16but we're just starting.

59:18Right.

59:19So the capacity for destruction is huge here.

59:22How much involvement from nation states

59:24do you think there is on this?

59:26You know, it's interesting.

59:29So you've got Iran, you've got North Korea,

59:31China, Russia, you got the big four.

59:33You also got Brazil.

59:35You've got all these other countries

59:36that are interested in the United States as well.

59:40Nation states are interesting

59:42depending on who the nation state is.

59:44All right, so Russia is very good about working

59:46with the type of criminal that I used to be.

59:48You know, they'll enlist these guys

59:49and steal information or what have you,

59:51then Russia will take the information they want to,

59:54and they'll basically go off and sell whatever you want to

59:56and make some money.

59:58China's all about IP.

60:01North Korea is about stealing money

60:02because they really don't know

60:03what the hell else to do right now, but...

§08Transcript · 1:00:07–1:08:26

60:07So North Korea is actively involved in cybercrime.

60:09Absolutely.

60:10They've stolen a shitload of Bitcoin, everything else.

60:13So absolutely, they're actively involved with that.

60:16Very, very skilled attackers, very skilled.

60:19But even if you look at, you know,

60:20I told you that stat about 90%, all right?

60:23So even though SolarWinds is going to be

60:27the number one attack,

60:29the followup to that is this NotPetya attack that happened.

60:33And so that was the most sophisticated attack

60:35launched by the Russian Sandworm Group

60:38using all known exploits throughout.

60:40So it's not, again, it's not...

60:43You're right in the sophistication

60:45is typically not technical sophistication,

60:47but it's a social engineering sophistication.

60:50How do you get these things put together

60:52in line to attack and succeed?

60:55But when you get access to the source code,

60:57that's where technical sophistication could really do

60:59a lot of damage.

61:00And that's when you find out real quick,

61:02that's what separates the men from the boys in this game.

61:05All right, because all of a sudden it's not,

61:07I don't have to worry about social engineering.

61:09I've got source codes and I've got professionals

61:11that are looking at that.

61:13And that's your ass.

61:15Which then enables probably even more powerful

61:18social engineering methods too.

61:20I mean, it's just the cascade of...

61:24Is this terrifying to you, by the way?

61:26That this world that we're living in,

61:29as we put more and more of ourselves on the internet,

61:34into the metaverse, that there's so many more

61:38attack vectors on our wellbeing?

61:40What's terrifying to me, I used to preach it on Shadow Crew,

61:45is the idea that the perception of truth

61:49is more important than the truth itself.

61:52It doesn't matter what the facts are,

61:53it matters what I can convince you of.

61:56That's what's terrifying to me.

61:58So you look at deep fakes, you look at fake news,

62:02all this stuff that's going out,

62:03that becomes truly terrifying.

62:09Maybe there's an angle where it's freeing,

62:11if nothing is true and you can't trust anything.

62:15But you see, we as human beings, we wanna trust.

62:20We do, we need human interaction.

62:22And for that human interaction,

62:24you have to have a degree of trust.

62:27But it's more like you let go of an idea of absolute truth

62:31and it more becomes like a blockchain style consensus.

62:35So you let go of like, you know what?

62:39There's this human dream, you get this on the internet,

62:42you get like facts, as if there's at the bottom,

62:47at the bottom, there's one turtle that's holding

62:49this scroll that says, these are the truths of the world.

62:54The problem is, I mean, maybe believing

62:57that is counterproductive.

62:59Maybe human civilization is an ongoing process of consensus.

63:04And so it's always going to be, everything is shrouded

63:08and you can call them lies or you can call them inaccuracies

63:11or you can call them delusions.

63:13It's constantly going to be, it's going to be a sea of lies

63:16and delusions, but our hope is to over time

63:22develop bigger and bigger islands of consensus

63:24that allows us to live a stable and happy society.

63:27Don't call it true, call it a stable consensus

63:32that creates a high quality of life

63:34for the inhabitants of the island.

63:36I like it, I mean, I like it.

63:38I mean, we're going to agree on this.

63:40And then don't use outlook, no, I'm just kidding.

63:43So maybe a step back, you mentioned, I'd love to talk

63:47about ShadowCrew, maybe this is the right time

63:49to actually, yeah, let's go to ShadowCrew

63:51because it's such a fascinating story.

63:53So tell me the story of building ShadowCrew,

63:54the precursor to today's darknet and darknet markets.

63:59This is why you're the original Godfather.

64:02This is it, this is it.

64:04So I get married.

64:06I faked a car accident to get married,

64:09got the money from that.

64:10You're romantic.

64:11I remember, like my dad, man.

64:13I'm the guy that, you know, I get from mom,

64:15I get the criminal mindset.

64:16From dad, I get that, don't want him to leave.

64:19So, you know, so.

64:22To get married, what's that story?

64:26Oh, dude, I was.

64:28How did you fall in love there?

64:29My first girlfriend was a preacher's daughter

64:32and crazy over her, dated her for five years.

64:35And she figured out pretty quickly that,

64:38well, not quickly, it took her five years

64:40to figure out that Brett Johnson is not the man of God.

64:44I could talk it, but more that agnostic than anything,

64:50she breaks up with me.

64:52So I was at the community college.

64:54You'd make one hell of a preacher by the way.

64:56Thank you.

64:57Let's put that.

64:59Yeah.

65:02I've got that Langston Hughes problem.

65:04I'm looking for Jesus to show up and he just doesn't.

65:08So I was at the community college

65:10and I was a straight asshole.

65:12I was arrogant, conceited, everything else.

65:14And I had posted an advertisement

65:17on one of the billboards looking for an adult babysitter,

65:20hot blonde, you know, come visit me in the library.

65:24Buddy of mine shows up and he's like, Brett.

65:26And I was like, yeah.

65:27He's like, hottest girl in school, right down the hall.

65:29And I was like, serious?

65:30He's like, yeah.

65:31And I was like, let's go see.

65:34Walk over and there's these two guys that are hitting on her.

65:37So I just walk up and me and Todd, that was my buddy,

65:40walk up and I'm just sitting there and listening.

65:43And they're giving the spill and everything.

65:45And she's just kind of taking it in.

65:46Finally, I looked over and I was like,

65:48you want to get out of here?

65:50And one of the guys looks at me and he's like, hey,

65:53we're talking to you.

65:54And I was like, well, you're talking at her.

65:55You're not talking to her.

65:57I'm about to save her ass from you.

65:59Yeah, that's a smooth pick up line, by the way.

66:01If I ever heard one, that's good.

66:02You want to get out of here?

66:04So start dating, and she was the girl

66:08that screwed my brains out.

66:10And I fell head over heels.

66:13We got married six months later.

66:15Six months.

66:16That's what love does.

66:17That's what it does.

66:18And she didn't know I was a crook.

66:22She had no idea.

66:24She knew I was very bright.

66:26She knew I did a lot of theater, stuff like that.

66:30Got a job at, I was in hazard.

66:32There was no jobs to be had, so I got a job in Lexington,

66:35because we were going to be moving to the UK.

66:38Got a job in Lexington at Lexmark testing printer boards,

66:43circuit boards.

66:44So I would leave on a Thursday night,

66:46work three 18 hour shifts at Lexmark,

66:50come back home on Monday.

66:54Got married, faked a car accident

66:56to get the rest of the money that I needed to get married.

67:02And the faking on that, man, I had bought a Chevy Spectrum

67:07at a car auction.

67:08Gave like $500 for it.

67:09My aunt had previously defrauded USAA insurance

67:14on a car accident, and she was telling me all about it.

67:16She's like, look, go down to this chiropractor.

67:18Make sure you get the insurance where

67:19they'll pay for a rental car.

67:21They'll pay lost wages.

67:22I was like, they pay lost wages?

67:24She's like, yeah, they pay lost wages.

67:25I was like, hmm.

67:26She's like, by the way, you work for me.

67:29And I was like, I work for you.

67:32And you get to define the wage.

67:34And you could also define how long you were unable to work.

67:37Exactly.

67:37Exactly.

67:38And the chiropractor will sign off on any damn thing.

67:40So my cousin, Ronnie, he figures out that I'm going.

67:45He finds out I'm going to fake this car accident.

67:47So he comes to me.

67:48He's like, hey, man, can I get in on that?

67:49I was like, yeah, man, you get on that.

67:51So this kid, he's five days younger than I am.

67:53This kid, he goes to the dentist the day

67:55that we're faking it, has a tooth pulled,

67:58tells the dentist not to numb it, not to stitch it,

68:01just pull it.

68:02So he shows up.

68:04He shows up the day that we're driving out

68:06to fake the accident.

68:07He's got blood all over his shirt.

68:08He's still bleeding out of the mouth and everything else.

68:09I'm like, are you OK?

68:10He's like, yeah, man, it's going to be good.

68:12It's going to be good.

68:12I'm like, OK.

68:14My mom, by this point, I'm living with my grandparents.

68:17My mom is up in the head of a hollow.

68:20So we're like, we'll just do it up there.

68:22We'll go act like we're visiting my mom on the way back out,

68:25ran over a mountain.

§09Transcript · 1:08:26–1:15:38

68:26OK.

68:27So we go visit and everything, come back out that night,

68:30run over the side of the hill.

68:32Me and Ronnie walk back up.

68:33Of course, it totals the car.

68:35Walk back to my mom's, acting like we've wrecked.

68:37She knows what time it is and everything else.

68:40And file the claims.

68:41So that gets the money to get married.

68:44And me and my wife moved from Hazard to Lexington.

68:49And I'm the kid that my crime, usually, if I was a single guy,

68:57wouldn't break the law.

68:58Wouldn't.

68:59I would be all right.

69:00But females involved, oh, yeah.

69:03Oh, yeah.

69:03Got to spend the money.

69:04Got to show them gifts.

69:05Everything else was never enough to show love

69:07in some sort of healthy way.

69:09Always had to go overboard.

69:10And typically, it was buying or stealing

69:12some sort of expensive crap.

69:13So that was the thing.

69:15That was the way you show love is by buying expensive gifts.

69:19Or something overboard.

69:20Back then, with Susan, initially, it was,

69:24don't worry about working.

69:25I got it.

69:26You just worry about going to school.

69:27She was a music major.

69:29I was like, you just worry about going to school.

69:31So don't worry about cooking and cleaning.

69:34I got it.

69:34I got it.

69:35So not only was I this guy that was going overboard,

69:37but I was kind of a control freak, too.

69:40So no, I got it.

69:41I got it.

69:41I got it.

69:42So here I am, 60 hour a week job, 18 hour class load,

69:47cooking and cleaning.

69:48Something had to give.

69:50I quit the job.

69:51I couldn't do it.

69:51Quit the job and start back in fraud.

69:55And trying to hide that from her at the same time.

69:57So it was initially telemarketing fraud.

70:03The first job I had was a telemarketer at a cemetery,

70:07selling gravesites.

70:08And then that ended.

70:11Went over to work for the Shriners Circus, Shriners

70:13Hospital.

70:14And it was a third party company that

70:16was doing all the telemarketing.

70:17Made really good money doing that.

70:19That job ended.

70:21And then they pivoted over to working with Kiwanis Clubs,

70:25selling food baskets to the food banks and everything.

70:29So I stole the phone list and started at my own Kiwanis Club

70:34and would do the telemarketing, go out twice a week

70:38and pick up checks.

70:39Well, what happened was is I'm going out picking up checks,

70:44go knock on a door.

70:46Turns out one of the persons that I had called

70:48was a law enforcement officer.

70:50So he was like, who are you?

70:54I'm with the Kiwanis Club.

70:55And he's like, no, you're not.

70:57So got arrested, spent three months in a county jail

71:00for theft by deception.

71:03Got out.

71:04And we had to move from Lexington back to Hazard

71:09and live with Susan's parents.

71:10They had gotten a desktop computer, HP.

71:15And I started surfing around online.

71:18Found eBay.

71:19And didn't really know how to make money on eBay.

71:22At about the same time, I'm committing low level frauds

71:28online.

71:29And I don't really talk about that in the past.

71:30The first time I've really talked about that.

71:32But I would pay for it with bad checks.

71:37So more person, so not using a platform like eBay and more.

71:41I would find somebody that had like a stereo system on eBay,

71:44something like that.

71:44And I'd pay for it with a bad check

71:46and would rely on them not to chase me

71:49because they were out of state at that point.

71:51And the dollar amounts were very low.

71:53So got the money to move to finally

71:56did those schemes enough to get the money

71:58to move back to Lexington.

72:01Got to Lexington.

72:02And by this point, I'm doing, like I said,

72:04these schemes on eBay.

72:07And I'm like, there's got to be a better way

72:09to make money on eBay.

72:10Got to be.

72:11So didn't really know how.

72:13One night, I'm watching Inside Edition with Bill Riley.

72:16And they're profiling Beanie Babies.

72:18So I'm sitting there watching.

72:19The one they're profiling is this one called Peanut,

72:21the Royal Blue Elephant.

72:23Selling for $1,500 on eBay.

72:25I'm sitting there going like, shit,

72:27I need to find me a peanut.

72:30My initial thought was, well, there's

72:32got to be one in one of these Hallmark stores

72:33in Kentucky someplace.

72:35So I skip class the next day.

72:36Went out around all the Hallmark stores looking for peanut.

72:39No, idiot.

72:40He's on eBay for $1,500.

72:43So after a few hours of that, I'm like, hmm.

72:49Turns out they had a little gray Beanie Baby elephants

72:51for $8.

72:52Picked up one of those for $8.

72:54Stopped by Kroger on the way home.

72:56Picked up a pack of Blue Rit dye.

72:58Went home, tried to dye the little guy.

73:00So that was a nightmare.

73:02Turns out they're made out of polyester.

73:04Get them out of the bath.

73:05Looks like they've got the mange.

73:08And what happens is, so I'm trying to dye the damn thing.

73:11I'm like, well, that's not going to work.

73:13That's just not going to work.

73:14So I got online, found a picture of a real one,

73:17posted it on eBay, and I was like, well, what I can do

73:20is I can claim that's the one I've got

73:25and then maybe claim that it got messed up in the mail

73:28and work out like that.

73:29So posted a picture of a real one online.

73:32Woman thought I had the real thing.

73:33She wins the bid.

73:35That social engineering kicks in immediately.

73:37I didn't want to be on the defensive.

73:39I wanted to put her on the defensive.

73:41So as soon as she wins the bid, I send her a message.

73:44Hey, we've not done any business before.

73:46I don't even know if I can trust you.

73:47What I need you to do, protects us both.

73:50Go down the US Postal Service.

73:52Get two money orders totaling $1,500.

73:54Send them to me issued by the US government.

73:57That way we're both protected.

74:00Soon as I get the money orders, I'll send you your animal.

74:02She believed that.

74:03Didn't ask any questions at all.

74:04She believed that.

74:07Sent me the money orders.

74:07I cashed them out.

74:09Sent her the creature.

74:10Immediately got a phone call.

74:12I didn't order this.

74:13My response, lady, you ordered a blue elephant.

74:16I sent you a blue fish elephant.

74:19And she got pissed.

74:21And she kept calling.

74:23What I found out, and that's really

74:25the first lesson of cybercrime that most of these criminals,

74:27including self, learns.

74:29If you delay a victim long enough,

74:30just keep putting them off.

74:31A lot of them, they get exasperated,

74:33throw their hands in the air, walk away.

74:35You don't hear from them.

74:36And none of them, to this day, none of them

74:40complain to law enforcement.

74:41They eat it.

74:42So it's a mixture of you're exhausted by the process,

74:47so it's just easier to walk away,

74:49and second, almost like an embarrassment.

74:52So there's a whole slew of reasons, all right?

74:54There's the exhaustion, certainly.

74:56There's the embarrassment.

74:57So if you figure out, if you look at it today,

74:59where does the embarrassment come from?

75:00Well, the media, family members,

75:03we're all very good about blaming the victim for crimes.

75:06Why would you click on the link?

75:07Why would you send money to somebody you don't know?

75:09Blah, blah, blah.

75:10So you've got that that's going on.

75:12You've got the issue of, who do you complain to?

75:15Back then, you didn't know.

75:16Do you complain to local police?

75:18Because she's in another state, so which local police

75:21do you complain to?

75:22Do you complain to the feds?

75:23Well, the dollar amounts aren't high enough

75:25to complain to feds.

75:26Feds are going to tell you to go local.

75:28Local's going to tell you, hey, it happened in Kentucky.

75:30Complain to them.

75:31Kentucky's going to tell you, well, shit, you're over there.

75:34We need you to come in.

75:35So there's this whole issue of the jurisdiction,

§10Transcript · 1:15:38–1:24:08

75:38of the blame factor, everything else.

75:41So I got away with that crime and did it under my own name

75:45at that point.

75:46I kept going and got better at it,

75:49started to understand how to hide identities,

75:51things like that.

75:52Started selling pirated software.

75:54Pirated software led into installing mod chips.

75:58The initial pirated software was Sega Saturn, PlayStation 1.

76:02Well, you had to have a mod chip in those

76:03to play the pirated disk, so I started

76:06selling and installing mod chips.

76:08That led into installing mod chips in the cable television

76:11boxes so you could watch all the pay per view, which in turn

76:15led into programming satellite DSS cards.

76:18Those 18 inch RCA satellite systems,

76:20pull the card out of it, program it, turns on all the channels.

76:24Started doing that.

76:26Can we just pause?

76:28That is very entrepreneurial.

76:33So just technically, so there's laws and rules

76:41that you're breaking nonstop.

76:43So there's also legitimate ways of doing

76:46that, which is break the rules of the conventions of the past.

76:49That's the first principles thing.

76:51That's what Elon Musk and his ilk do all the time.

76:55That is guts and brilliance.

76:59But when it's crossing the lines of the law,

77:03actually sometimes the law is outdated.

77:07The thing is, as a human being, you

77:09have to then compute the ethical damage you're doing.

77:12Like ethically, the damage you're

77:14doing about other human beings, that is fundamentally

77:16the thing that you're breaking, is you're

77:19adding to the suffering in the world in one way or another,

77:22and you're justifying it.

77:24But in terms of me sort of as an engineer,

77:27that is some gutsy thinking.

77:29That's how Woz and Steve Jobs thought.

77:34That's innovation.

77:35And maybe just think, if you can introspect your thinking

77:40process here, this is a new, I like

77:44how you remember this in HP, this

77:48is a totally new thing to you.

77:50Computers is another domain.

77:53How were you figuring these puzzles out,

77:56presumably mostly alone?

77:58Alone.

77:58When you were thinking through these problems, is there,

78:03this is a strange question to ask,

78:04but what is your thinking process?

78:08What is your approach to solving these problems?

78:10So the approach is you do something, and you fuck it up,

78:15and you're like, you think back, OK, how do I fix that?

78:20You fix that aspect, you commit the crime again.

78:23And it goes a little bit further, and it screws up.

78:26OK, how do I fix that?

78:28What's the issue on that?

78:29How do I fix that?

78:30So there's not a deep design thinking like that?

78:32Later on, it becomes that.

78:33Once you lay that groundwork of the way

78:36these schemes are working, it becomes that.

78:39And you can apply that to other things in cybercrime

78:42as a whole.

78:44But initially, it's basically trial and error.

78:47You've got a problem, how do you solve that problem?

78:50So I'm committing these crimes under my name,

78:54how do I solve that?

78:56Well, one of the first principles

78:57that we started to teach on Shadow Crew

78:59is all crime should begin with identity theft.

79:03That's one of the main first principles

79:05that a lot of people to this day still don't really get.

79:08All right, why would I commit a crime under my name

79:10if I can do it under your name?

79:12So that's one of the big buffers.

79:13And that takes trial and error to get

79:15to that point where you start to understand

79:17that's the way crime should operate if you're a criminal.

79:20But with me, it's trial and error.

79:25It's that childhood where that mindset

79:28is kind of ingrained in you where you're looking

79:31for ways, let's say nontraditional ways

79:35of getting around things or getting through things.

79:37I mean, one of the questions I'll probably ask this later

79:41is there's also a unique aspect to the outcome

79:44of what you were doing, which is you weren't,

79:47you didn't get caught for a very long time.

79:50We'll talk about why that is.

79:52And the thing is, it's so interesting,

79:54all crime probably should, to be effective,

79:59should start with identity theft.

80:01I like that identity theft

80:02because identity theft can take so many forms.

80:05Right, right.

80:06So yes, so Shadow Crew.

80:09So what's, so as we're, you started with love.

80:13Started with love.

80:14So now we're doing these schemes online.

80:18I'm selling to these,

80:20I'm programming these satellite DSS cards.

80:22And one of the interesting things,

80:24and you still see that to this day,

80:26is something will happen

80:29that will create an industry for criminals, all right?

80:33So what happened is Canada, Canadian judge,

80:37rules about the same time

80:38that I'm doing these satellite cards,

80:40Canadian judge comes out and says,

80:41hey, it's legal for my citizens to pirate those signals.

80:47And his reasoning was is since RCA

80:49doesn't sell the systems up here,

80:51my citizens can pirate it.

80:53Okay, so what happens is is overnight,

80:57about the same time PayPal comes into play.

80:59So PayPal is coming right online at about the same time.

81:03Overnight, a little cottage industry

81:05pops up in the United States.

81:07You go down to Best Buy, buy the system for $100,

81:09take it out in the parking lot, open system up,

81:11pull it, open box up, pull the system out,

81:13pull the card out, throw the system away,

81:14program the card, ship its ass to Canada, $500 a pop.

81:17Started doing that.

81:19Business is good.

81:21Making, you know, $3,000, $4,000 a week doing that.

81:23I'm like, yeah, that's good.

81:26I have so many orders, I can't fill all the orders

81:29and quickly think to myself,

81:31why do I need to fill any of them?

81:33They're in Canada.

81:34I'm down here.

81:37You know, who are they gonna complain to?

81:39Because I already found out people don't complain, all right?

81:42They're not gonna complain to anybody.

81:45So I start not.

81:46Especially in Canada.

81:46Especially in Canada.

81:47And I'm having them send money.

81:50That's when PayPal's first into play.

81:53And it amazes me that everybody is using PayPal.

81:58It's like, you don't even have to really ask.

82:00They're like, can we pay by,

82:01yeah, you can pay all day long by PayPal.

82:03And PayPal had no clue what they were doing with security.

82:05So it's like, okay.

82:08So they're sending money to PayPal.

82:09I'm having the PayPal cashed out to bank accounts

82:13in my name at that point.

82:15And I get scared because by that point,

82:17I'm still in four to $6,000 a week.

82:20And I'm like, somebody's gonna be looking at money laundering.

82:23So get it in my head.

82:24I'm like, best thing that I can do

82:27is get a fake driver's license,

82:28open up a bank account using that driver's license,

82:31cash out at the ATM.

82:33Good.

82:34No idea where to get a fake ID.

82:35Not a clue.

82:36So I get online, looked around.

82:38Spent a couple of weeks looking around.

82:40Thought I found a guy.

82:41He went by the screen name of Fake ID Man.

82:43Thought I found a guy, sent him $200, sent him my picture.

82:46Dude rips me off.

82:48And I'm like, what the hell, man?

82:52Oh, I got played.

82:53He had a little website set up with reviews.

82:57And I'm like, oh, it's all legitimate.

82:58He's building that trust that I talked about.

83:01So the end result, I got pissed.

83:05And there was no site that dealt with anything

83:10criminal or cyber crime related.

83:14The only real avenue you had was an IRC chat session,

83:17internet relay chat.

83:18And that, I'm sure you've been on that.

83:20It's this rolling chat board.

83:22You don't know who the hell you're talking to.

83:24Most of them are full of shit.

83:26You can't trust anybody.

83:27And you're sitting there trying to conduct business.

83:29So if somebody claims they've got a product or service,

83:32do they have it?

83:33Does it work?

83:33Are they just gonna rip you off?

83:34Because in those channels, everyone's a criminal.

83:37I kept looking around and I've happened upon a website

83:42called Counterfeit Library.

83:44And Counterfeit Library only dealt with counterfeit degrees

83:48and certificates, degree mail type stuff.

83:51But they had a forum and no one was using the forum.

83:55So I basically get on there and bitch every day.

83:58I got ripped off, don't know what to do,

84:00bam, bam, bam, bam, bam.

84:01About the same time I started doing that,

84:03two other guys show up.

84:04One's named Mr. X, he's out of Los Angeles.

84:07Other guy's named Beelzebub,

§11Transcript · 1:24:08–1:32:06

84:08he's out of Moose Jaw, Saskatchewan.

84:11And we all become buddies.

84:13So a few weeks of me bitching,

84:15a few weeks of them responding.

84:17Beelzebub gets me on ICQ and he sends me a message.

84:20He's like, I went by the screen name of Gollum

84:22at that point, Gollum Fun.

84:24And he's like, Gollum, I can make you

84:26a fake driver's license.

84:27And I was like, well, motherfucker, do it.

84:28And he's like, well, I'm gonna charge you for it.

84:30I'm like, yeah, you are.

84:32He's like, I am.

84:33I was like, no, you're not.

84:35And he's like, look, man, he said,

84:37this business, if you're gonna do this,

84:40you have to trust people or you're gonna fail.

84:44He said, so I'm gonna charge you $200,

84:46but I'm gonna send you a driver's license.

84:49Well, by this point, I'm friends with the people

84:51who own Counterfeit Library.

84:53We're emailing, chatting, everything else.

84:55And I tell him, I'm like, okay, I'm gonna send you $200.

84:59That way, when you rip me off, I'll have them ban you

85:02and I don't have to deal with you anymore.

85:04And he's like, bet.

85:04I'm like, okay.

85:06So I sent him $200, sent him my picture.

85:09Two weeks later, I get a driver's license.

85:11Name is Steven Schwecki out of Ohio.

85:13And real guy, worked at ADP payroll to this day,

85:17works at ADP, is where the guy works.

85:20Got the driver's license.

85:22And to me, at that point in time,

85:24it was the prettiest thing that I'd ever seen.

85:27You know, I'd never seen a fake ID before.

85:29I thought it was great.

85:30Turns out, you know, looking back, it was like, eh.

85:33So, but.

85:35That is kind of a strong first step

85:39in creating a fake identity.

85:42Very strong, very strong.

85:44So this is. So that was like, Gasko just,

85:48on the point he made, that if you're gonna be successful

85:53in this, you should have people you trust.

85:56Is he right on that?

85:58Oh, he's absolutely right.

86:00He's absolute.

86:00So you have to have, this is like mob.

86:03You have to.

86:04You have to have an inner circle that you trust.

86:07You know, I'm sure you've probably

86:08heard me say this before.

86:11Successful cyber crime, all right?

86:14There are three necessities to being successful online

86:17if you're a criminal.

86:18Three necessities are gathering data,

86:21committing the crime, and then cashing it out.

86:24All three of those necessities have to work in conjunction.

86:26If they don't, the crime fails.

86:28The problem, and it's a huge problem,

86:30is that one guy can't do all three things.

86:34You know, you've got the people who gather the data.

86:37Basically, the general store sells people

86:39who sell PII, credit card logins, data tools.

86:44They always sell the spoofed phone numbers

86:46and the RDPs, stuff like that.

86:48A lot of the times, those people don't know

86:49how to commit the crime.

86:51And those people certainly don't know

86:52how to launder the money out, put cash in pocket.

86:54So you've got, either because of a skill level,

86:58sometimes a geographic location,

87:00limits what that individual can do, all right?

87:03So you have to rely on people who are good in areas

87:06where you are not in order for that crime to succeed.

87:10And that means you have to trust those people.

87:15So what happens with Shadow Crew, all right?

87:17So Counterfeit Library is the start, all right?

87:21Counterfeit Library transitions over to Shadow Crew.

87:24Right before that transition, there's a Ukrainian guy.

87:27By the name of Dmitry Golubov.

87:29He was a spammer at that point in time.

87:31He saw what we were doing with Counterfeit Library

87:34and he liked it.

87:35He was getting all these credit card details

87:37and this kid, I mean, he's a kid.

87:39This kid has an idea.

87:41And his idea was, I wonder if people would buy

87:43stolen credit card details.

87:45That's pretty good Ukrainian Russian accent.

87:47So he picks up the phone, he calls his buddies.

87:52They call their buddies.

87:53They have a physical conference in Odessa.

87:56150 of these cyber criminals show up.

87:58And they launched this idea,

88:00this launches a website called Carter Planet,

88:03which is the genesis of all modern credit card theft

88:06as we know it, all right?

88:07And so, remember I mentioned those three necessities

88:10of cyber crime.

88:12Dmitry had all the credit data in the world.

88:16And he partnered with all these other Ukrainians

88:17who had all this data as well.

88:19The problem was, is so much fraud had been committed

88:22on that Eastern side of Europe,

88:24that every card had been shut down.

88:26Even if you were a legitimate card holder

88:28and tried to cash it out,

88:30you weren't doing it at that point.

88:32So again, those three necessities,

88:33gathering data, committing crime, cashing out.

88:35Dmitry had the data.

88:37They could commit the crime.

88:38They could not put cash in pocket.

88:41So we were running counterfeit library.

88:44One day I get this message,

88:46or not a message, one day script shows up.

88:48And he posts just on the general forum.

88:50He posts, hey, I've got credit card data.

88:54Give me an address, give me a burner phone number,

88:56wait five business days, order whatever you want to.

88:58We had never seen anything like that.

89:01We were a PayPal fraud and eBay fraud site,

89:03is what we were, and fake driver's licenses.

89:06So then, and we had,

89:07I guess we had two, 3,000 members at that point.

89:09So the response from the members was, that can't be real.

89:16You've gotta be law enforcement.

89:17It's gotta be trying to get us arrested and everything else.

89:21What, let me backtrack a little bit.

89:23So the driver's license that I had got,

89:27Beelzebub had an idea.

89:28What he wanted to do is he wanted to sell driver's licenses.

89:34Mr. X wanted to sell social security cards.

89:36He made a very passable social security card.

89:39Me, I didn't, I had no skill level on that.

89:40I knew PayPal fraud and eBay fraud.

89:42So Beelzebub was like, I'll tell you what,

89:45you be the reviewer.

89:47That way you get every product or service that comes in.

89:50They'll have to send it to you or let you have access to it.

89:53You can learn the entire game.

89:55And because you're not selling anything,

89:57it gives you legitimacy on the reviews, all right?

90:01So I started out as a reviewer,

90:02the only reviewer on Counterfeit Library.

90:05So over the next year, Beelzebub turns out

90:09he was a pot grower.

90:10He goes back to growing pot

90:11because he wasn't making shit selling driver's licenses.

90:14Mr. X, about a year and a half in,

90:16he gets arrested cashing out driver's, not credit cards,

90:20cashing out to casinos, doing some shit with that.

90:24So I'm the only guy left standing

90:26and I'm at the top of the heap.

90:28And it becomes this thing where if I review somebody,

90:32they make a lot of money.

90:33If I don't, you don't do business here.

90:36So script shows up saying he's got this.

90:38I'm the only reviewer on site.

90:41People think he's law enforcement.

90:43First week it goes like that.

90:45After a while, I'm like, okay, I gotta do something.

90:47And I'm scared, man,

90:48because I'm like, he may be law enforcement.

90:50So I get him on ICQ and I'm like,

90:52hey, you have to be reviewed.

90:53He's like, what the hell is that?

90:54So I tell him what it is, he's like, you reviewed me.

90:56I was like, yeah, that's the idea.

90:58So give him a drop address, give him a burner phone number,

91:03wait five business days,

91:04and I try to hit Dell for $5,000.

91:06The order fails.

91:08I get back on ICQ, hey man, it didn't work.

91:10He's like, give me one more chance.

91:12I was like, look, I'll give you one more chance,

91:13but it's your ass after that.

91:15He's like, one more chance.

91:16I go, okay, give him another address, another phone number,

91:20wait another five business days,

91:22hit Thompson's Computer Warehouse for $4,000,

91:25Dell for $5,000.

91:26Order goes through, get the products in.

91:29I post that review on Counterfeit Library,

91:33and literally overnight,

91:35we turn from an eBay PayPal fraud site

91:38to a credit theft site.

91:40And that becomes a lot of money really quickly for members.

91:44So we were doing, now it's called CMP fraud,

91:46card not present fraud.

91:47So you hit an online merchant

91:49with stolen credit card data.

91:51Back then, a fairly experienced fraudster

91:54could profit 30 to $40,000 a month, okay?

91:58Just buying laptops, what have you,

92:00and cashing out, put them on eBay for sale

92:03and sell them like that.

92:03And 30 to 40K a month was the profit on that.

§12Transcript · 1:32:06–1:40:21

92:06Script had a lot of buddies.

92:08He had people like Roman Vega,

92:11these other guys that would sell

92:12not just credit card data,

92:14but counterfeit physical credit cards as well.

92:17We had, and he.

92:18Counterfeit, not stolen.

92:20So counterfeit.

92:21Counterfeit.

92:22That must be tough to do.

92:25So the connection.

92:26That must be harder than driver's licenses.

92:28It's crazy.

92:29So what BOA initially had,

92:32and I became the United States salesperson for BOA,

92:37but what he had was,

92:38is he was the first dumps provider in the United States.

92:42So on the back of your credit or debit card,

92:44there's a magnetic stripe.

92:47Three data tracks on the stripe.

92:48There was the first data track is the customer's name.

92:50Second data track is the card number,

92:52forward slash 16 digit algorithm outside of that.

92:56That's important.

92:56We'll get back to that in a few minutes.

92:58Third data track is called indiscriminate data.

93:00No one uses it, all right?

93:02So what's bought and sold is the second data track.

93:05It's called the dump.

93:06And the reason that's sold is when you go into a shop,

93:10you insert the card or you swipe the card,

93:12the only information that's sent out for verification

93:15is the second data track, all right?

93:17That goes to the processor bank for verification.

93:19The first data track, that customer's name,

93:21shows up on the screen of the cashier in front of you.

93:24So what typically happens is,

93:26is you buy 10 of these dumps.

93:28You get 10 counterfeit cards

93:30in code track two on all 10 cards.

93:32Track one, you create one fake driver's license.

93:35Track one is just the name

93:36of that one fake driver's license.

93:38That way, when you go in the shop, swipe the card,

93:40track two gets sent off for verification.

93:42Track one shows up on the screen in front of the cashier.

93:44If you ever ask for ID, you pull out the fake ID.

93:47Everyone's a nice, warm, fuzzy.

93:48You walk out with the cameras, Rolex.

93:51And track one could be, it doesn't have to be connected.

93:54It's not connected to track two.

93:55Not connected at all, all right?

93:57That's one of the big problems, all right?

93:59So Scrip brought a host of technical people

94:05into that type of environment,

94:07all committing credit card theft.

94:08We had proxy providers.

94:10We had all these people that were doing this stuff.

94:13We start making a lot of money, a lot.

94:15And the reason that happens is, again,

94:17Scrip did not have the ability to cash out.

94:21So he was reduced to selling things.

94:23And at the same time, he's looking for,

94:25how do I make more money, all right?

94:28The Ukrainians happened upon this thing

94:31called the CVV1 breach, or hack,

94:34is what they called it.

94:36So what happens is, remember I told you track two,

94:39card number forward slash 16 digit algorithm.

94:43You gotta know the algorithm to encode it

94:46so you can swipe the card or take it to the ATM machine.

94:49All right, ATM.

94:51You gotta know it.

94:52Now we were fishing data from hell.

94:54I mean, we were doing a lot of fishing, a lot.

94:58We were getting pins, we were getting card numbers,

95:01but you can't get that algorithm.

95:03So Ukrainians start testing stuff.

95:07What they found out was no bank

95:10had implemented the hash on track two.

95:13So you take the card number forward slash any 16 digits,

95:17it would encode.

95:19Take it to the ATM, pull cash out,

95:21because you got the pin, all right?

95:24Started doing that.

95:26Well, wait, sorry, I'm trying to understand.

95:28So that means, so if there's no hash,

95:32are they generating random numbers

95:34or do they have valid numbers for track two?

95:37No numbers needed at all,

95:38as long as just the track two was a complete track two.

95:41So it's a valid track two that doesn't match,

95:45so the pin is the thing that gets you in?

95:48So back then, all right, back then,

95:50what we're talking about is you needed,

95:52typically today you need a whole track two.

95:54You need that valid track two.

95:55All right, you need the 16 digit card number,

95:59forward slash, and then whatever that algorithm

96:01does, the other side of it, all right?

96:03Back then, none of the banks had implemented that algorithm.

96:06So while the algorithm was there,

96:08you didn't need it to encode.

96:13Interesting.

96:14Interesting.

96:15So you can make a lot of money with physical of fake.

96:20So much money that card not present fraud.

96:24Card not present fraud, remember I told you,

96:25was $30,000 to $40,000 a month, all right?

96:28That turned into $30,000 to $40,000 a day.

96:32The Ukrainians, again, they can't cash it out.

96:36They've got all the data on the planet,

96:38but they can't cash it out,

96:39those three necessities of cybercrime.

96:41So the deal became, you have to rely on the Americans.

96:44Tell you what, we'll give you 40%.

96:46So you had all these cashiers

96:48that were 40% of $40,000 a day.

96:51Yeah, we'll take that, all right?

96:53Send the rest of it over to buy Western Union

96:55or what have you to your Ukrainian contact.

96:57That's before cryptocurrency came into play.

96:59Now you had a couple of forerunners

97:01with eGold and Liberty Reserve, things like that.

97:04But back then it starts out with Western Union,

97:07then it becomes prepaid cards,

97:09sending track information over,

97:11loading the card up like that,

97:12and then finally you get to eGold, Liberty Reserve,

97:14and then today it's with crypto that's used.

97:19Started stealing a lot of money, a lot.

97:23And that got law enforcement attention.

97:26So we started to see, I mean, it's a crazy ass story.

97:30We started to see IPs coming in

97:33from law enforcement agencies, government agencies,

97:35because back then they didn't know

97:36how to shield their identity either.

97:38So you saw Secret Service, you saw DoD,

97:42you saw all these like, and you're like,

97:44that's interesting.

97:45So, you know, and at the same time,

97:51it was called a hack, but it wasn't a hack.

97:54We had a guy that worked at T Mobile in Los Angeles.

97:58This is the same guy that back then

98:01published Paris Hilton's phone contact list.

98:04That made a lot of news.

98:07Not only did he do that, but it turned out

98:09that the Los Angeles Secret Service Agency

98:12was using T Mobile phones.

98:14So he's getting text messages of the Secret Service

98:17investigating Shadow Crew,

98:19and he posts those damn things on Shadow Crew.

98:21So I'm sitting there going, head of the pile,

98:23I'm sitting there going, this is not gonna end well.

98:27This is not gonna end well.

98:28So at the same time, I had access,

98:31I started out with access

98:33to the Indiana State Sex Offenders Registry,

98:35and I was using that to create bank accounts,

98:37launder the money out, and I would sell the bank accounts,

98:39stuff like that.

98:42They shut that down.

98:43The next database I had access to

98:44was the Texas Driver's License database,

98:47and started using that to create fake driver's licenses,

98:51what have you.

98:52And then finally, we happened upon

98:54the California Death Index, all right?

98:58Complete information, mother's maiden,

99:00socials, DOBs, all that, and it's like,

99:04gotta be a use for that.

99:06Well, you can use it to create identities all day long.

99:09My idea was, I wonder if you could take somebody

99:14that's died and then file for social security death benefit,

99:18not death benefits, but social security benefits

99:20for that individual, and get that recurring paycheck in.

99:23So that takes a lot of research

99:24to start seeing if you can do that.

99:26How does the federal government know if you're dead?

99:29Do federal indexes reference state indexes?

99:32You got all these questions that pop up.

99:34Well, it turns out, federal indexes

99:36don't reference state indexes, it's against the law.

99:39It also turns out, the only way the federal government

99:42knows you're dead is prior to 1998,

99:46the family had to file a social security death benefit

99:51for that person, all right?

99:53Prior to 98.

99:54Which of course most people don't.

99:56Right, prior to 98, it took the family.

99:58After 98, the hospital can do it,

100:01funeral home can do it, or the family can do it.

100:03So a lot more people have it filed after,

100:05if they've died after.

100:06But it's still, there's a lot of people

100:08who probably don't. A lot of people don't.

100:09Because that death benefit's only like $219, okay?

100:13Nobody's thinking about that shit.

100:15So I started to apply for social security benefits.

100:19Nope, number's dormant.

§13Transcript · 1:40:21–1:48:32

100:21So they want you to come in for a physical interview.

100:23Here I am, you know, 32.

100:26You're not gonna pass as a 65 year old, so no.

100:29So the next idea I had was,

100:32I wonder if you could file income tax returns

100:34on these people.

100:37Turns out you can, all day long.

100:40So I started doing that.

100:42And I started to steal, once I got ramped up,

100:45because you test everything.

100:46You know, you're testing to make sure,

100:47you gotta figure out what the deposit instrument is

100:50and everything else.

100:51And once you get all that lined out,

100:53I started to steal $160,000 a week,

100:55every week for 10 months out of the year.

100:58By paying taxes?

101:00By filing fake returns.

101:03Yeah, filing fake tax returns.

101:05So you find a business, and the way the system worked

101:07is the IRS will issue a refund on somebody

101:11before they're able to verify

101:13that that person worked for an employer.

101:15Still works like that today.

101:17All right, so.

101:18And you're keeping the amounts relatively low.

101:20Keep them at $3,000.

101:22All right.

101:23Amounts are very low.

101:24But you're still able to achieve scale

101:25because this large index of real people.

101:27I got to where, and I was manual.

101:28Later on, a couple buddies of mine

101:30went automated with it.

101:31Wait, you were doing this by hand?

101:32So there's no code involved?

101:34All manual.

101:35Wow.

101:36I'd file a return once every six minutes.

101:39Work 10 hours a day, three days a week.

101:42So clicking on, so typing fast and clicking.

101:44One return every six minutes.

101:46That's changing IP.

101:47That's changing address.

101:49Everything else, one return every six minutes.

101:52For three days a week.

101:54Fourth day, I would take a road trip,

101:57plot out a map of ATMs.

101:59And then the next two days, cash out.

102:01Bam, bam, bam, bam, bam.

102:02All right.

102:03Come back home, rinse and repeat.

102:06Turns out that a backpack,

102:08I don't see anybody sitting around here,

102:09but a backpack will hold $150,000 of 20s,

102:12is what it will hold.

102:14So I'd put 150K and 20s in a backpack.

102:16I had a spare bedroom.

102:18I'd come in, toss the backpack in the bedroom.

102:21This is very, very important information.

102:23And the fact that you know it is also very,

102:25first we started with the volume of coal that weighs a ton,

102:27and now a backpack holds $150,000 of 20s.

102:32And then you can multiply that by five 400s.

102:35Yeah.

102:36I like this.

102:37It's also times 20s coming out of ATM, right?

102:39Each 20 weighs a gram.

102:42Each 20 weighs a gram.

102:43So you can actually go by weight,

102:45which is what federal authorities do

102:47when they get a pallet of cash, they just weigh it.

102:49Oh, they just, they just weigh it.

102:52So 150K is seven and a half keys of cash.

102:55One and a half, 15, oh, that's pretty light.

102:59Not bad, not bad.

103:00Yeah, you get a big backpack,

103:02go do a good run with David Goggins with it.

103:05I like it.

103:05The fact that you know this is great.

103:08So wait, where does that come in with the backpack?

103:11So what happens is I didn't know how to launder money.

103:14All right, so I'm throwing cash in the spare bedroom.

103:17One day you open up the bedroom and you're like,

103:20gotta do something with those backpacks.

103:22And that's when you start learning how to launder money,

103:25cash based businesses, things like that.

103:26I had a production company,

103:28had a couple of detailing company.

103:29I was thinking about going into food trucks,

103:31things like that in Charleston.

103:33Actually, can you pause on that to take a tangent there?

103:35How does money laundering work?

103:39I mean, at that time and what years are we talking about?

103:42This is, by the time the tax return schemes go into play,

103:46we're talking 2002, 2003 is when tax returns start.

103:51And so what, at that time and what you're aware of now,

103:54how it evolved, how does money laundering work?

103:59You know, it's not that much different.

104:00It's really not.

104:02You get a cash based business,

104:04start laundering the money or putting the money through that,

104:06saying the transactions are legal.

104:08You then start depositing into bank accounts.

104:11From bank accounts, my thing was is

104:15have bank accounts in the United States, Mexico, Canada,

104:19and then finally bounce over to Estonia

104:22was the final destination of all this stuff.

104:24And the idea is to try to move them to so many places

104:28that by the end of the day, it looks legal

104:31and you can't trace it all if you're ever caught,

104:34which you ultimately are.

104:36But so cash based businesses, you know.

104:38So when you say, sorry to interrupt,

104:40the cash based businesses,

104:41so you have money that needs to be moved to other people.

104:48So how does that work?

104:49What's the business?

104:50Are people providing you a service

104:52and you're giving them money?

104:54Right, so you do the Ozark thing if you wanna do that.

104:57So you can gamble, cash out something like that.

104:59So it trips to whatever casinos you've got.

105:02You've got your production company or your detail company.

105:05So how many cars are you cleaning a day?

105:08How many companies have you got to do that?

105:10All right, whatever that company is,

105:12it's gotta be cash based.

105:13Somebody's paying you in cash is what you're doing.

105:16You have to have enough of those cash based businesses

105:19where it doesn't look funny.

105:21All right, because if you're a detail company

105:23making $100,000 a month, that's a problem.

105:26Okay, so then you start depositing into that.

105:30Well, because of the Patriot Act,

105:33a suspicious activity report, SARS, came in at $2,500

105:37instead of the 10K that it used to be.

105:40So all of a sudden you've got multiple bank accounts

105:42that you've got to set up, all right?

105:44Fortunately, what you also had

105:46is you had a bunch of prepaid debit cards

105:47that were coming into play at the same time.

105:49So a combination of bank accounts, prepaid debits

105:53that had ACH abilities attached to those as well,

105:56and you start running them all together.

105:58Then once it's out of the United States,

106:00you don't have to worry as much.

106:01You can start funneling that into fewer bank accounts

106:05until finally you've got the one main account

106:07that's over at Bank Letico in Estonia at that point.

106:11That's what you've got.

106:12So a bunch of hops that end up at a place

106:15that you can't trace.

106:16And to give you an idea, I was arrested February 8th, 2005.

106:19My last seizure was 2010.

106:22Got the last seizure notice.

106:24So they got it, but it didn't took them that long

106:28to get to it.

106:30So how do stories like with Script that come into play here

106:34where he had someone who owed him money

106:38kidnapped and tortured.

106:40So when does it turn darker?

106:45It turns darker the more money you make.

106:48Script was a kid that he was stealing enough money

106:52that he was able to buy whatever estate he wanted to.

106:55And he would brag about touring the countryside.

106:58And if he saw property that he liked, he would buy it.

107:00And that was not just a brag, he was doing that.

107:03So this kid is stealing a lot of money.

107:05At the same time, he's got connections politically

107:08because of his family, he's got connections

107:10and that family's got connections with a Ukrainian mob.

107:13All right, so he's got these inroads

107:16and people are looking out for him

107:17and he's stealing a lot of money at the same time.

107:20Somebody doesn't pay him a decent amount of money.

107:24Somebody doesn't pay him.

107:25Now we had never, with Shadow Crew, with Carter Planet,

107:29with Counterfeit Library, we were basically the geeks.

107:33All right, we were just the fraudsters,

107:35the social engineers.

107:36We had never really considered violence.

107:38The rules that I had in play were,

107:40hey, we don't do child pornography,

107:43we don't do counterfeit currency, we don't do drugs.

107:46And the only thing we ended up really obeying

107:48was the child porn stuff, except for Max Butler,

107:51who you mentioned earlier.

107:54Script, someone rips the guy off.

107:57And he comes online on Shadow Crew at that point

108:02and he posts these pictures one day.

108:04And I mean, it was a detailed narrative through the pictures.

108:07Had the guy that rammed in the van,

108:10he had the door open, rammed in the van,

108:12had the guy tied up, had the guy being tortured.

108:15And the response was, this is what happens

108:20when you steal from me.

108:22And that's the first time that violence came into play

108:27at that point, and that's when things got,

108:29you start realizing things are getting a little serious.

§14Transcript · 1:48:32–1:57:03

108:32How did that make you feel?

108:34The first response is, can't be real.

108:38He's just doing that.

108:42You know, he's wanting to send a message.

108:44Then you're like, no, that's real, that's real.

108:49Were you afraid in your own heart

108:52that you might descend to that too?

108:55Like if you see that, or was it pretty clear to you

108:58that that's a line that some people can cross

109:02and some can't and you're not one of those that can cross it?

109:05You know, I gotta tell you, I joke with my wife.

109:10The joke I tell my wife is, you know,

109:13I knew some guy that had 8,000 Bitcoins.

109:15I might be persuaded to ask him for access to that.

109:19And she was like, how?

109:20And I was like, well, hammer and toes.

109:23And I say that as a joke,

109:28but there's that line where you're like,

109:32I remember who I used to be.

109:34And if you're looking at that kind of money,

109:38I might be persuaded to do that back then.

109:41You know, that's, and I think that was Scripps issue

109:46is it was a lot of money to him.

109:49There's the money.

109:50And then there's, you know, violence can also be gradual.

109:53So over time you do a little more, a little more,

109:54a little more, a little more.

109:56You get used to what's going on

109:58and then I get desensitized.

109:59And you figure, you take somebody like Ross Ulbricht,

110:02the Silk Road guy, all right.

110:05Ross was not a violent guy.

110:08He was not.

110:08But at that point in time, you know,

110:10he was sitting on 24 million in Bitcoin.

110:13He was the only game in town.

110:15And that 24 now is like, I don't know,

110:1722, 24 billion, some crap like that.

110:20But he felt in danger.

110:27This guy was gonna turn him in.

110:28You know, it was a black mountain and everything.

110:29So Ross thinks he hires a couple hit men to kill the guy.

110:34So it becomes that thing.

110:36And I saw that over and over again.

110:38And I'd like to say I wasn't like that,

110:41but given the same circumstances,

110:43I would have probably done the same thing.

110:46And also when you're, it's not just about money,

110:49there's a lot of other forces.

110:50Like if you're threatened for your wellbeing

110:54or for your wealth or for your power,

110:56all of us operate under different motivations.

110:59Plus that online aspect with those communities like that,

111:02if you're the head guy,

111:03you really feel like you're the parent of these guys.

111:06So somebody is starting to threaten them,

111:07it's like, all right, what do I need to do?

111:10So what do you make of Silk Road?

111:12The Shadow Crew started something that today

111:16you can call dark net and dark net markets.

111:19So these markets that operate, that trade,

111:23trade things, everything from child pornography to drugs,

111:28to, I mean, what else?

111:31Everywhere.

111:32What are the dark things that humans want to do

111:34that they don't want anyone to know about?

111:36All of those things.

111:39So can you maybe tell me, you know what?

111:44Let's just even step back.

111:45What is the dark net?

111:46How big is it?

111:47What happens there?

111:48Let's backtrack a little bit more before we get to that.

111:51All right, what Shadow Crew did,

111:56other than dealing in all these stolen wares,

112:01what Shadow Crew did that's really important.

112:04Remember those three necessities that I talked about?

112:08But the important thing is,

112:09is it established trust among criminals, all right?

112:13Because that's a necessity.

112:14You have to be able to trust who you're dealing with

112:17because you have to deal with somebody.

112:19You have to, all right?

112:21So how do you know you're not dealing with a cop?

112:23How do you know you're dealing

112:24with somebody that's skilled?

112:25How do you know you're going to deal with somebody

112:26that's not going to rip you off?

112:27You have to be able to trust that individual.

112:30The Shadow Crew provided

112:31that trust mechanism for criminals.

112:33You had that communication channel, the forums,

112:35where you could reference conversations weeks, months old,

112:38take part and learn from those conversations.

112:41You had vouching systems and review systems in place,

112:44escrow systems in place.

112:46You knew by looking at someone's screen name,

112:49if you could trust the individual,

112:51network with the individual, all right?

112:53And that community of just humans

112:57provided that backbone of trust.

113:01And that's really interesting when you think about it.

113:04You had the trust that was there,

113:05but you also had this,

113:08almost this instantaneous information

113:11that was available about the community

113:13or about cyber crime at large.

113:15And that's still in play today, all right?

113:18So that was the way things were

113:21until a couple of things happened.

113:23And one was cryptocurrency.

113:25The other one was the Tor browser, the dark web.

113:29Now I was working with a secret service,

113:30ripping the secret service off,

113:32when Tor comes into play, all right?

113:34So we got a memo in one day

113:37and it was talking about the Tor browser.

113:38And it was like, we really need to be careful with this.

113:41This is going to be problem.

113:43And so we all fired up the Tor browser

113:45and it turns out it was, this was 2005, early six.

113:50It turns out it was completely unusable,

113:52could not use it at all,

113:53simply because no one was using it

113:55and it was extremely slow.

113:56So for people who don't know,

113:58Tor browser is a way to be completely anonymous.

114:01As long as you properly know how to use it, huge caveat.

114:04All right, so developed by the United States Navy

114:07and they developed it.

114:08I don't know this.

114:10Oh yeah.

114:10It wasn't the hackers that, interesting.

114:13US Navy, to this day, the number one funder of Tor,

114:17military, to this day, all right?

114:20Interesting.

114:21I mean, the same, I guess with the internet,

114:22the origins are the dark web and DOD.

114:25It was developed so that operatives could communicate

114:28with each other without being identified, all right?

114:31That then goes open source.

114:33They release it, EFF comes in,

114:35start sponsoring and everything else like that.

114:38The next idea was, well, you know,

114:40people can get around their country's firewalls,

114:42whistleblowers can use it, things like that.

114:44Well, someone forgot to mention

114:45that the first adoptees of tech,

114:48if you can use it to launder money or remain anonymous,

114:50are criminals.

114:52And so criminals start to use the damn thing.

114:55All right?

114:56So along the same time we get,

114:59well, a few years later,

115:00we get Satoshi Nakamoto pops up

115:02with his ideas for Bitcoin,

115:05and then Ross Ulbrich runs with it.

115:07Ross Ulbrich decides he's gonna start up Silk Road.

115:10So initially the people who were using Tor,

115:13which later is the dark web,

115:15people were using Tor or just talking with each other,

115:18visiting websites, communicating like that.

115:21Someone figured out,

115:22hey man, we could host websites on this thing,

115:25and they have a lot of trouble finding the box.

115:28So that is the advent of Silk Road all of a sudden.

115:33Ross Ulbrich has this idea

115:35that he's gonna change the world

115:37by becoming the largest drug dealer on the planet.

115:40So he opens up the Silk Road

115:42and the only payment instrument he allows is Bitcoin.

115:46So if those people out there are wondering

115:48why Bitcoin is going at what, 44K today?

115:51Yeah, and by the time this is out,

115:54it could be 100,000 or 10,000.

115:56Absolutely.

115:57We'll see.

115:57Who knows?

115:58If it's 10,000, I'm going to buy some.

116:04Which is a hilarious statement to make

116:06because that statement would be ridiculously wrong

116:09like five years ago, right?

116:10I know, I know, I know.

116:12People 100 years from now will be laughing,

116:14wait, it was that low back then?

116:18So he only accepts Bitcoin,

116:20and of course the initial use case of crypto

116:23is no one wants to admit it today,

116:26but the initial use case is we're gonna buy a bunch of pot.

116:29We need somebody, we need a way to pay for it.

116:33So that's what happens.

116:35Ross, it's really interesting to me.

116:38If you look at motivations of cyber criminals,

116:43the motivations are status, cash, ideology, all right?

116:48My guys, all cash, across the board, all cash.

116:52Ross is ideology.

116:54He really believed he was gonna change the world.

116:57He really didn't.

116:57I've been fortunate.

116:59I actually know the guy who ran Silk Road 2

§15Transcript · 1:57:03–2:05:50

117:03and have talked to the kid, everything else,

117:07and I will tell you that those guys

117:10who are motivated by ideology,

117:13they are a completely different breed.

117:16They really are.

117:17It's not, you know, the cash guy, it's low hanging fruit.

117:21The ease of, it's hard to stop committing crime,

117:26but it's much easier for a cash motivated individual

117:29to stop than it is that ideology guy.

117:32That Silk Road 2 guy, he's still got it.

117:35You know, he's not breaking the law,

117:36but you can see it's like, he wants to, he wants to.

117:41So it's...

117:44That's fascinating that, I mean,

117:45the worst atrocities in human history

117:47are committed with people that operate under ideology.

117:51All the other motivations are much weaker.

117:53But you know, you think about it,

117:54with Ross, I mean, very bright guy, very bright guy,

117:59but think about the amount of cognitive dissonance

118:02that the guy's got,

118:04that he thinks he's gonna change the world

118:06by running a drug site.

118:09I mean, certainly, I mean, could he have changed the world?

118:12Yeah, could he have done it like that?

118:15Probably not.

118:17Well, I can steel man those arguments.

118:19I listened to quite a few libertarians

118:22and you can push that to anarchists.

118:25You know, there's a lot of people that argue...

118:28So I actually talked to a professor at Columbia

118:32who actually argues that all drugs should be legalized

118:35and not at a philosophical level, political level,

118:37but the fact that all the negative consequences of drugs

118:41that people talk about actually have to do

118:44with other factors in your life.

118:47I would agree with that.

118:48And so that's, okay, but that's more like a argument

118:51about negative aspects of drugs.

118:53I think the ideology comes in where it's like,

118:56well, nobody should tell you what to do.

118:59You should have the responsibility of your own actions.

119:02Like the government or any other institution

119:07shouldn't be the rule setters,

119:12the constraints for how you live your life.

119:14And so I could see that argument being made

119:17and ultimately if you like create an open market for drugs,

119:22how that could build a better society,

119:24it might break down the outdated, the corrupt,

119:28the bureaucratic institutions.

119:29I mean, you can make that argument.

119:31There's an argument and let's be fair.

119:33I wanna be fair with it.

119:34I mean, did he change the world?

119:38We do have this whole thing called cryptocurrency.

119:40Yeah, in the long arc of history, perhaps.

119:43Yeah, we do have that.

119:46That's a biggie.

119:48And that might've been for it to take hold in society.

119:50Maybe the darker parts of society at first,

119:52maybe that was necessary.

119:54Right, I mean, maybe, we'll see how it pans out.

119:57Shadow Crew, we had this guy, Albert Gonzalez,

120:02Albert Gonzalez, that's the kid's name.

120:04We had, we were growing so big

120:06that I had to start farming things out.

120:11So the first thing I started farming,

120:12I instituted this review system,

120:16kind of establishing that trust mechanism

120:18even further for criminals to use.

120:21We needed somebody to take care of our tech aspects

120:25of the forum.

120:25So an associate of mine by the name of Kim Taylor,

120:29where we're looking for a forum techie,

120:31he comes to me one night and he's like,

120:33found our forum techie.

120:34I was like, who's that?

120:35And he's like, it's this kid.

120:36And I was like, is he any good?

120:38He's like, well, he knows the software.

120:39And I was like, okay, we'll just sign his ass on.

120:43He went by the screen name of Kumbajonny,

120:45was his screen name.

120:46And he starts selling credit cards after a while

120:49under a screen name of Scarface.

120:51And that CB1 breach where you're cashing out

120:56the track twos at ATMs, $40,000 a day.

121:02So Albert's in New Jersey one day, broad daylight,

121:06and stands at an ATM for 40 minutes, just standing there,

121:11feeding in one ATM card after another, pulling out cash,

121:16taking the 20s out, stuffing them in that backpack.

121:19Meanwhile, just across the street,

121:21a couple of cops just happened to be there.

121:23And they start noticing this kid just standing there.

121:28So 40 minutes, they watch this kid, 40 minutes.

121:31Finally, one cop looks at the other,

121:33let me see what's going on there.

121:36Walks over across the street, Albert's wearing a wig.

121:39He's got the disguise on, everything else like that.

121:42Ask him, kid, what are you doing?

121:43Albert falls apart.

121:46We didn't know Albert had been arrested.

121:48So Albert immediately goes in,

121:51I wanna work for the Secret Service.

121:55At that point in time, Secret Service,

121:59I referred to, and I wanna make sure I don't say,

122:03it's not like that anymore.

122:04But back then, they were fucking idiots, all right?

122:07They had no clue what was going on.

122:09So there was a competence issue

122:10that they were working through is one way to put it.

122:12That's a nice euphemism.

122:15So, or fucking idiots is another way to say it.

122:19So they're just not aware of the digital world.

122:21They had no clue, no clue.

122:23The way that Albert tells them how to catch us

122:26because they looked at him, how do we catch them?

122:28And Albert's like, Albert, I'm serious, I'm serious.

122:32So Albert's like, well, you could try a VPN.

122:35What's a VPN?

122:37So he explains it to them, they're like,

122:39that's a good idea.

122:41So I quit Shadow Crew.

122:43I was worried about all the news

122:45that was coming in and everything like that.

122:46I'm stealing 160K a week.

122:47I didn't know Albert had been arrested.

122:51I'm worried about being arrested.

122:52I know the writing's on the wall.

122:54And I'm like, I'm quitting.

122:56Where did you see the writing?

122:58The IPs that were coming in,

123:00the text messages about the Secret Service investigators

123:03I referred to.

123:04So the pressure's building.

123:05This is not gonna end well.

123:06This is going to be bad.

123:09So I announced my retirement of February 15th,

123:13I'm sorry, April 15th, 2004 is my retirement.

123:18I think that's the 2004.

123:19And I quit, I walk away.

123:22Well, Albert had been arrested.

123:24They cut him loose.

123:26No one knows he's been arrested.

123:27He comes back into Shadow Crew.

123:29I leave Kim Taylor at the same time.

123:31He's kind of on the run, which if you wanna know that story,

123:34that's a nightmare story in and of itself.

123:36So my second in charge, Kim Taylor, this guy,

123:40there was this guy named David, oh, what was his name?

123:46He was, El Mariachi was the guy's name.

123:49David Thomas.

123:50David, yeah, he was a film guy.

123:53Scarface.

123:54So El Mariachi, real name David Thomas,

123:58he's on the run out of Nebraska for check fraud.

124:02He comes to us on Shadow Crew telling us this sad story.

124:06We take up a collection for this guy.

124:09Send it to him, all right?

124:10I get him a job working with a low level carter

124:13trying to make him some money, all right?

124:16El Mariachi, Thomas does this for a few weeks,

124:19comes to me one day and he's like,

124:20man, I'm not making any money.

124:22I'm like, okay, let me see what I can do.

124:23Well, I had a Ukrainian guy by the name of Big Buyer.

124:27He, a real friend of mine.

124:29And I contacted him, I was like, look, man,

124:30I got a guy that wants to do some work.

124:32Can you help the guy out?

124:33And he's like, I got it.

124:34I was like, okay.

124:35So he sends Thomas enough money to go,

124:38Thomas is in Texas at that point,

124:40sends Thomas enough money to go from Texas

124:43to Issaquah, Washington and rent an office space, all right?

124:48So Thomas goes up there, rents his office space,

124:51him and his girlfriend rents an office space.

124:54And the plan is, is Big Buyer is going to place an order,

124:59get product sent, Mariachi is going to get the product,

125:03list it on eBay, cash out 50 50, easy enough, all right?

125:07So Big Buyer places an order.

125:09First order is outpost.com, $18,000.

125:13The largest order outpost.com had ever received

125:16at that point in time.

125:18Order goes through.

125:19It goes through still.

125:20Goes through, he gets the product, all right?

125:23Mariachi comes back, tells me,

125:25tells my second in charge, Kim Taylor.

125:27Kim Taylor at this point, I'm 33, 34.

125:31Kim Taylor's 46.

125:32He works at the Tattered Cover Bookstore

125:35in Denver, Colorado is where he works at this point.

125:37And he fancies himself Jason Bourne, all right?

125:40He's even got one of the screen names of Jason Bourne.

125:43So I'm like, all right, so Mariachi is telling us

125:46how much money he's making, everything else.

125:48I'm like, well, that's good.

125:49I'm glad you're all right.

§16Transcript · 2:05:50–2:14:08

125:50Kim contacts me and he's like, I want to go to Issaquah.

125:53And I was like, why?

125:54And he's like, to make some money.

125:55I'm like, you're making money.

125:57He's like, I want to go to Issaquah.

125:58I was like, all right, go, be careful.

126:00So he gets in the car, Saturn is what he's driving.

126:04He drives his little piece of Saturn

126:06all the way up to Issaquah.

126:08Gets there, you know, midnight.

126:10They party all night long

126:12because they've never met each other.

126:14They're just celebrating, partying, drinking,

126:16everything else like that.

126:17Meanwhile, Big Buyer has placed another order

126:23with Outpost.com, $17,000.

126:27The second largest order Outpost.com had ever received

126:31at that point in time.

126:33By this point in time, Outpost knows

126:35the first order was fraudulent.

126:37Guess where it's going?

126:38The exact same address the first order goes.

126:41So Outpost picks up the phone, calls Issaquah PD.

126:44Hey, we got a fraudster.

126:46Issaquah's like, would you mind sending some empty boxes?

126:51And Outpost is like, be happy to.

126:54So the rule was, is on credit card fraud,

126:58if you've got full account access,

127:00you place the order.

127:01The morning it's supposed to arrive,

127:03you sign into the bank account or the credit card account.

127:06If you can sign in, you go pick up your product.

127:09If you can't sign in, you go back to sleep that day.

127:12All right?

127:13Well, Big Buyer was the guy who placed the order.

127:17Mariachi and my second in charge are partying, all right?

127:20So they're supposed to contact Big Buyer, they don't.

127:24Meanwhile, Big Buyer is raising hell,

127:26getting up with me like, hey, where are the guys?

127:31I can't find them.

127:32They don't need to pick up this product.

127:34So I can't get in touch with them.

127:36They go down to pick up the,

127:37so Mariachi's got a Cadillac, old 70s Cadillac.

127:41He's got a Cadillac, pulls into the complex.

127:45Now Mariachi's driving,

127:49Kim Taylor's in the passenger seat,

127:51David Thomas's girlfriend's in the back seat.

127:54As they pull into the complex,

127:55going through the parking lot,

127:57Mariachi just happens to glance over and he sees a van

128:00with a guy sitting sideways in the van.

128:03And he looks at Kim Taylor and he's like,

128:05that's an undercover.

128:07And Kim's like, ah, it's fine.

128:10So they pull up to the office complex.

128:13Kim's like, I'll go in and get the packages.

128:16So he walks in, looks at the guy behind the counter.

128:19I believe you have some packages for us.

128:21Guy's like, one second.

128:23So he disappears around the wall,

128:26out pops the Issaquah PD, arrests Kim.

128:29David Thomas is in the car watching all this happen.

128:32He bugs out and they arrest him on the interstate

128:37where he has three fake driver's licenses in his wallet

128:40along with his real driver's license, another no, no,

128:43but they get him.

128:44So David Thomas had outstanding warrants out of Nebraska.

128:48We couldn't bond him out.

128:50Kim Taylor didn't have any warrants.

128:52So we bonded him out.

128:53My third in charge, kid, Seth Sanders was his name.

129:00He bonds him out, uses his girlfriend's account

129:02to bond him out.

129:03And I get Kim Taylor to go to Utah

129:09where another friend of mine agrees to house him,

129:13him and his wife.

129:15So I think everything's fine and all that.

129:18About three weeks later, this guy in Utah

129:21gets me on the phone.

129:22I'm like, hey, he's got to go.

129:24I'm like, what's going on?

129:27He's like, well, the only thing he's doing

129:30is popping ecstasy tablets every day, all day.

129:33And I'm like, seriously?

129:35He's like, yeah.

129:36I was like, okay, he's got to go.

129:37So we kick him out of there.

129:38By this point, I've got another crew that's coming through.

129:40I mean, I had all these crews running.

129:42Had another crew that's coming through Denver.

129:45Send Kim back to Denver to partner up with these guys.

129:50Kim gets these guys arrested.

129:52So by this point in time, I'm exasperated.

129:54I just want to throw my hands up in the air and walk away.

129:57So my retirement's coming up at the same time.

130:00So I'm like, fuck it, I'm done.

130:03So I tell everybody, the rest of the admins

130:06and the mods there, I'm like, this is what's going on.

130:08You guys need to watch out for this.

130:09We need to ban Kim, not let him back in.

130:11Be careful what's going on.

130:13I walk away.

130:15At the same time I walk away,

130:17Cumberjani, Albert Gonzalez, comes back into play.

130:20He sees everything that's going on.

130:22He uses that to his advantage.

130:24He starts banning everyone that's suspicious of him,

130:26sets up the VPN at the same time and says,

130:29hey, to make sure we're all secure,

130:31I need all transactions to go through this VPN.

130:34VPNs ran by the Secret Service.

130:37All right, Secret Service ends up,

130:39I think they ended up cataloging like $7 million

130:41worth of transactions over the next four or five months.

130:45Shadow Crew makes the front cover of Forbes, August, 2004.

130:49Headline, Who's Stealing Your Identity.

130:52October 26, 2004, United States Secret Service arrest,

130:5633 people, six countries, six hours.

131:00I was in Charleston, South Carolina when I saw it happen.

131:02And I'm like.

131:03So you're the one that got away.

131:08I'm the one public.

131:09There were a couple other guys that got away

131:10that they didn't publicly mention.

131:12One, his name was Tron.

131:14He was a zero.

131:17Yeah, exactly.

131:18But he went by the screen name Tron.

131:21He had access, almost unfettered access to Bank of America.

131:27So what happens is they identified the guy,

131:29Secret Service is in the air to go get him.

131:31They call the Ukrainian police.

131:33Hey, we're coming down to arrest this guy.

131:34Ukrainian cops are like, oh, come on down.

131:38So as soon as they got off the phone,

131:39Ukrainian cops get in the car, go down and tell Tron,

131:42hey, they're coming to get you.

131:44Yeah.

131:45So he bugs out down to South America

131:47and they don't catch him I think for six or seven years

131:50after that, something like that.

131:51But caught him eventually.

131:52Caught him eventually.

131:53Well, let me actually ask you on this point.

131:55You've said that if you do cyber crime eventually,

131:59it's not gonna end well.

132:00It does not end well.

132:02Why is that?

132:03So I don't wanna say that's because

132:05you're gonna be arrested because honestly,

132:07very few people are arrested, all right?

132:10But it doesn't end well because of the type of person

132:13that you become.

132:14You quoted me earlier, you lie to everybody around you.

132:21You lie to yourself, you lie to your friends,

132:23you lie to your family.

132:24Of course, you lie to your victims.

132:25You don't have any friends.

132:27You know, I went 20 years without friends.

132:30I had associates, I didn't have friends.

132:33And you can't truly trust anybody.

132:35You don't trust anybody.

132:36You don't trust anybody.

132:37You know, I had my wife, I was married for nine years.

132:41I lied to her every single day of those nine years.

132:46And it took her nine years to give up on me,

132:49to realize that I was that piece of shit.

132:52And she leaves at that point.

132:55Then from there, I started dating a stripper

132:58and lied to her.

132:59I thought I had friends.

133:00I lied to all those people that I knew

133:02that thought they were my friends.

133:04I lied to them the entire time.

133:06You become that individual.

133:08I don't think a lot of people really understand

133:13how bad that is.

133:14You know, you talked about, you pointed out that woman

133:17that I ripped off.

133:18She was trying to put a roof on her house

133:20for her freaking kids, man.

133:22You're that person.

133:23You're that person.

133:24So you're also lying to yourself.

133:29And that's not a mindset in which you can

133:34grow as a person, find happiness,

133:38find genuine, simple human affection,

133:41which is what love is.

133:42Simple, real friendship, all of those things.

133:46So I went to prison, of course.

133:48One of the things, one of the most important lessons

133:50that I've learned in prison,

133:52because cyber crime as a whole,

133:54if you're a criminal, it's an addiction, all right?

133:56If you're addicted to something,

133:57whether it be drugs, crime, gambling, what have you,

134:00if you're addicted to something,

134:01you cannot love anything else except the addiction.

134:05The addiction comes first, all right?

§17Transcript · 2:14:08–2:22:16

134:08And you pointed out some of those truly despicable things.

134:13Script, for example, tortures that guy.

134:16You get to the point where it's like,

134:18okay, this is the business.

134:20And I tried to convince myself that I'm a businessman,

134:25but I'm a good guy on the other end.

134:27And you're not, you're not.

134:28So those lies become part of it, everything else.

134:31And yeah, the higher ups are usually arrested, they are.

134:37But you've got millions of cyber criminals these days.

134:40So most guys are not gonna be arrested.

134:43So you may be arrested.

134:45You may be like freaking Jonathan James.

134:49He was a minor, a very, very talented individual,

134:53very competent.

134:54He had, as a kid, he had broke into NASA,

134:57the OD, Pentagon.

134:59He shut the NASA computers down for six weeks.

135:01This is that kid.

135:03Then he decides he wants to go into credit card theft,

135:06partners with Albert, he's arrested with Albert.

135:09Law enforcement, they were gonna blame him.

135:13He was the only competent individual.

135:15So this kid gets up one day, he wasn't in prison yet.

135:19He gets up one day, goes in his dad's bedroom,

135:21gets out his 45, walks in the bathroom,

135:24and blows his brains out.

135:26You know, you've got things like that.

135:29Or you're gonna rip somebody off,

135:31and you're gonna end up like scripted with that guy,

135:32the guy who ran Evolution Marketplace.

135:37No one knew who, two people ran that guy and a girl.

135:40And no one knew who they were.

135:42He ends up stealing about $24 million,

135:45a lot of it from Ukrainian mob,

135:46and they found him about a year later

135:48on a beach without his head in hands.

135:51But you know, it always goes south.

135:53But more than anything, to me,

135:54the negative thing is you really become somebody that,

136:02I mean, just truly a despicable human being.

136:05When you get to the point when you're destroying

136:09people's retirement accounts,

136:11you're stealing money from a woman

136:13that simply wants to do something good for her family.

136:18When you become that individual,

136:20and you're okay with that, my God, man.

136:23It got to the point, I had one guy I ripped off,

136:26it's like for $900,

136:27is when I first started the cybercrime stuff.

136:29It's when I was becoming competent.

136:31And I ripped him off for like $900,

136:35and he sent me an email, and he was like,

136:41the email said something like,

136:43I guess you needed the money, and it's okay.

136:47You know, you keep it.

136:48And I'm getting chills right now thinking about it.

136:52It's that, where you become that individual.

137:00Yeah.

137:02Can I actually backtrack?

137:03Listen, I love love, okay?

137:06I do too.

137:07And there's a story that you fell in love with a stripper.

137:11I mean, you have to tell the story.

137:13So how did you fall in love with somebody,

137:17not that there's anything wrong with that profession,

137:19but it's romantic.

137:20It's like a true romance, by the way, great movie.

137:23It is a great film.

137:24It's truly a great film.

137:27Even Brad Pitt, who makes a brief appearance, is genius.

137:31There's so much good acting there.

137:32Anyway, so tell me that love story.

137:35All right, so like I said, from my dad,

137:39I get that fear of being abandoned.

137:41I lied to my wife for nine years until she leaves.

137:45And I was in Charleston, South Carolina.

137:48And what happened was, I noticed that Susan,

137:53she was not coming to bed like she used to.

137:56She'd stay up all night long,

137:57and sometimes she'd go and be gone a few hours

138:01and everything else.

138:02And I'm like, well, something's going on.

138:03And I'd pass by her computer

138:05and she would minimize the screens.

138:06And I'm like, well, gotta figure out

138:08what the hell is going on.

138:10So put a key logger on her system.

138:13As anybody should in a relationship.

138:17Absolutely, because you trust them, so why not?

138:20You should be tracking all their movements,

138:22all their stuff.

138:23Exactly, exactly.

138:24Like I said, I was the control freak too.

138:26It's romantic.

138:26So I found out she'd been cheating on me.

138:29And she was.

138:30See, there you go, they had a reason.

138:31They had a reason, I justified.

138:34So I found out she was cheating on me.

138:35She was asleep when I found it out.

138:36And I sat there looking at it and I was like, well, shit.

138:40So I got up, walked in the bedroom,

138:42opened up the wardrobe, got a suitcase out,

138:45started putting her clothes in it.

138:46And she wakes up, she's like, where are you going?

138:48And I'm like, I'm not, you are.

138:51Well, my bravado disappeared pretty quickly.

138:54I took about a week of both of us

138:58crying and arguing and everything else.

139:01And she finally left.

139:03And I went through this depression.

139:07I was in Charleston, South Carolina.

139:09I would just walk around the house kind of stumbling in a daze.

139:12Realized I was getting suicidal.

139:15And was smart enough to do something about it.

139:18And picked up the phone book.

139:19And that's where there's always this sense of humor.

139:22So I picked up the phone book.

139:23I'm going through the yellow pages.

139:25I'm like, psychologist, criminal psychologist,

139:27because I need that.

139:30Called the psychologist, crying to her.

139:32I mean, crying on the phone.

139:33Told her everything.

139:33I'm this criminal.

139:34This is what's happened.

139:35She's like, come in now.

139:36So I go in, spill my guts.

139:39And saw her for about four months.

139:42And I joke about it, but it's true.

139:43She was trying to get me to stop breaking the law

139:47and to go into real estate.

139:48And I remember telling her, is there a difference?

139:51She was like, yes, there's a difference.

139:54So I saw her for about four months.

139:57I was 34.

139:59I didn't start drinking until I was 34.

140:02I'd never done drugs or anything else like that,

140:04because my mom was an addict as well.

140:07So I was this guy that always wanted to be in control.

140:09Didn't want to lose control of myself.

140:13And had never been to a strip club.

140:16So one night, I was getting lonely.

140:19So I walked into the strip club.

140:20Actually, I was researching the strip club.

140:22And it was Joe's Roundup in Charleston, South Carolina.

140:27Joe's Roundup.

140:28Little bitty hole in the wall stuff.

140:30Yeah, real classy.

140:32So I walked in, and I'm literally

140:35that guy, man, that fell in love with the first stripper

140:39that he sees.

140:41She walks by, I'm like, that one.

140:44So I didn't know the strip club game.

140:46Again, criminal, naive as hell.

140:48So belly up at the bar, order the beer.

140:52I'm sitting there drinking it.

140:54She comes over to me, and we start talking.

140:57And she's like, would you like to get a bottle of champagne?

141:01I was like, does that mean going in back or what?

141:03She's like, well, yeah, you need to do the bottle

141:04when you're going back.

141:05And I was like, sure, let's buy a bottle of champagne.

141:08$400 bottle of Korbel.

141:11So I'm like, all right.

141:13And again, that bravado disappears pretty quickly.

141:15I get back there, and we talk for two hours.

141:18And nowadays, I don't understand that most men

141:21who go to strip clubs, the strippers

141:23are their therapist most of the time.

141:26So I'm sitting there talking, we're talking.

141:27And of course, she's sizing me up.

141:29She's looking at the watch.

141:30She's like, what kind of car do you drive?

141:33Everything else.

141:34And I'm telling her and talking.

141:36So at the end of the night, I'm like, really nice meeting.

141:39She's like, it's so nice meeting you, too.

141:41So I leave.

141:44You guys just talked.

141:45Just talked.

141:46And there's still this feeling of love and all of that.

141:48Yeah, so just talked.

141:49Just got along pretty good.

141:51I'm like, I like her.

141:52I like her.

141:54So come back in a week later.

141:57Walk in and call her over.

141:59And I was like, look, I said, that was my first time

142:02to a strip club.

142:03I said, don't know you.

142:04I like you.

142:04I'd like to know you more.

142:05Would you like to go out to dinner?

142:07And she was like, yeah.

142:10I was like, where would you like to go?

142:11So she says, Rue de Jon.

142:13And I was like, don't know what it is.

142:15That's where we'll go.

§18Transcript · 2:22:16–2:32:16

142:16So I go back.

142:16And I had a theater buddy at that point in time

142:19because I was trying to get my life together.

142:23JC was his name.

142:24And I was like, I got a date.

142:25He's like, you got a date?

142:26I was like, yeah, man, I got a date.

142:28And he's like, OK, where are you going?

142:30I was like, Rue de Jon.

142:31And he's like, take your wallet.

142:34I'm like, yeah.

142:35And he's like, take your wallet.

142:37I was like, all right.

142:38So we start doing the lunch and the dinner thing.

142:43And I get to where I really like her.

142:47I was 34.

142:48She was 23 and got along really well,

142:52had common interest in music and arts and stuff like that.

142:57I mean, it's stereotypical.

142:59She had graduated college with a degree in religious studies.

143:05Yeah.

143:06So I was like, all right.

143:08So yeah, you just fell in love.

143:10We got along really well, really well.

143:12So I ended up moving her in with me.

143:14She hadn't quit her job.

143:16And what was happening was she was working weekends.

143:22And the club would close at 3 or 4.

143:26She wouldn't come home until 10 or 11 in the morning.

143:30And most of the time, it would be a phone call saying,

143:33come and pick me up.

143:34I can't drive home.

143:35And then I'd never used drugs, had never been around.

143:39And my mom, Valium and pot and things like that.

143:42But as far as interacting with her,

143:43I'd never done anything like that.

143:46By this point in time, I'm kind of getting head over heels

143:48with her.

143:48I moved her in with me and everything.

143:50And I had never, I was 34, I had never

143:54went through a woman's purse in my entire life.

143:57And so she comes in, passes out.

144:01And I'm like, I got to know what the fuck's going on.

144:04And went over and went through her purse.

144:08Found cocaine and the straw, cut off straws and all that stuff.

144:13And I'm like, broke my heart.

144:15I just sat there and started crying.

144:19Got online, and I'm the guy that can find information.

144:23So I started looking for forums on strip clubs.

144:26Found a forum, found that one, found

144:30where it was talking about her prostituting herself

144:33to support the habit.

144:35And that got me, man.

144:40That got me.

144:41It was talking about everything she was doing to do that.

144:45And I broke your heart there.

144:46Oh, man.

144:48Yeah.

144:49So I didn't have the heart to tell her

144:53that I knew she was prostituting.

144:55But I went to her, and I was like, she's waking up.

144:58And I was like, look, I found this in your purse.

145:01I can't have that.

145:02And she's like, well, you think I'm prostituting?

145:04I was like, no, no, I don't think that.

145:06I knew it, but I didn't mention it to her.

145:08And I was like, I can't have that.

145:11Well, I don't do that.

145:13It's just a one time thing.

145:14I was like, all right.

145:15So she went back to work and continued

145:18to do it for a couple more weeks.

145:20And then finally, I was like, I can't.

145:23So I picked her up one morning.

145:25She couldn't drive home.

145:28Before I picked her up, I had written her a note,

145:31left it on the pillow.

145:32So I brought her home, tucked her in the bed,

145:35and told her I'd be back that night.

145:41Told her she had a letter when she woke up.

145:43And the letter was basically, I love you.

145:46If you can't stop this, don't be here when I get back.

145:50And I went to Columbia that day, came back that night,

145:59and she had quit her job.

146:07And she quit drugs that night, really quit them.

146:13And I got it in my head that I needed

146:21to do whatever I needed to do to make sure she didn't go back

146:26to that.

146:29That became, to me, because of my background,

146:35that meant spending a lot of money.

146:37And so every night was $300 to $600 for dinner.

146:42It was $1,000 shoes every week, $2,000 purse every week,

146:49all that.

146:49I had most of my money laundered out to Estonia.

146:54And Elizabeth, at the same time, she quit.

147:02But she didn't want me to go anywhere.

147:09All right, she wanted me there all the time.

147:12I guess that was that connection.

147:14I guess she was scared she might go back to something.

147:17So Shadow Crew gets busted.

147:21I go through, basically, all my US funds.

147:24Can't get anything from overseas.

147:26Shadow Crew gets busted October.

147:28I can't go into committing tax fraud because season's over.

147:32Can't go back into credit fraud because Shadow Crew's

147:35been busted.

147:35I don't know who to trust online.

147:38I'm left with running counterfeit cashier's checks

147:40to get money in, trying to make it until I can start back

147:45with some other fraud, and lying to her the entire time.

147:49She knows about none of this.

147:50None of it.

147:53And she thinks I've got a shitload of money.

147:55And she's got expensive taste.

147:59So at the same time, she couldn't be intimate.

148:06I mean, the girl loved me.

148:09That's the first time I've really said that.

148:12So there's deep love there both ways.

148:15Yeah.

148:17Yeah.

148:18Things we do.

148:21So she couldn't be intimate unless she was stone cold drunk.

148:30I mean, just shit.

148:31Stone cold drunk.

148:34And shit, I didn't mind her drinking alcohol.

148:38I'd rather have that than cocaine.

148:40So that was the intimacy there.

148:44And I kept thinking, if I continue to invest,

148:51that it would work out, that just keep going,

148:57she'll be all right, we'll be all right.

149:03And what happens is, like I said, she thought I had money.

149:07She thought I had money.

149:09She wanted a couple of Tiffany engagement rings.

149:11So I said, we can get married.

149:13I figured of marriage, show her that I love her,

149:17show her it's going to be all right.

149:18So I was like, let's get married.

149:21She's like, well, I've always wanted a Tiffany ring.

149:23She doesn't have money to buy the Tiffany ring

149:25because all my money was overseas.

149:26So here I am.

149:27I defraud.

149:29So it's counterfeit cashiers.

149:31I find like a three carat ring on eBay for 20 grand

149:36and pay for it with a counterfeit cashiers check.

149:40At the same time, because she doesn't want me to leave,

149:43she needs me there, typically, if you're

149:46doing that type of crime, you need to be traveling.

149:49You can't do it in one central area

149:51because you're going to be identified pretty quickly.

149:53I knew that, but I didn't have much choice.

149:57So start running counterfeit cashiers checks

150:00to get the money to live and everything.

150:03Get the engagement ring.

150:06We were scheduled to be married. Our wedding date

150:13was February 26, 2005.

150:19February 8, 2005.

150:23I've got a Tiffany wedding band, a couple of them coming in.

150:28And I get arrested in Charleston, South Carolina.

150:32And she didn't know.

150:34I told her, I said, I've got to go pick up those rings.

150:36She thought I was just having them sent in.

150:39I said, I've got to go get those rings.

150:40And I said, we'll go out to dinner after that.

150:43And I left at like 8 o clock in the morning.

150:49And I was arrested at, I think, 1130, something like that.

150:54Of course, I wanted to call her.

150:56And the FBI got me.

150:58It turns out it was controlled delivery.

151:00There were like 30 agents in the parking lot.

151:03FBI got me.

151:04Charleston PD got me.

151:05Within 45 minutes, the Secret Service

151:07comes in, takes over that investigation.

151:09They knew exactly who they had.

151:13Along about 7 o clock at night, they're

151:16like, we want to search your house.

151:18And I was like, look, I'll sign off on the search

151:21if you let me go with you so I can see her.

151:23And they were like, OK.

151:27So I got to see my phone at that point.

151:28I had like 140 calls where she had

151:32been trying to call all that time.

151:34She was worried.

151:35Yeah.

151:36And so they load me up.

151:40And hell, I mean, you talk about 10, 12 cars, 40 agents,

151:45everything else.

151:46She's got a dog at that point.

151:47I'm scared they're going to shoot the dog.

151:49And it was dark.

151:55And they had me walk up.

151:57And they're all behind me.

151:58I knock on the door and tell her the police are there.

152:01She needs to put the dog up.

152:03So she does, and they come in and just

152:06start ransacking them to put me in cuffs, set me down,

152:09start berating her with questions.

152:11She had no idea what the hell was going on.

152:13Were you able to say a word or two to help her understand?

§19Transcript · 2:32:16–2:41:40

152:16Yeah, I was trying to tell her.

152:18And at the same time, they take a watch off her wrist.

152:21They let her keep the ring.

152:24They're telling her that I'm this guy.

152:25What's my real name?

152:27Bang, bang, bang, bang, bang across the board.

152:29So she's probably terrified.

152:31Oh, yeah.

152:31Yeah.

152:32Yeah.

152:33And I tell her, I was like, look,

152:34they're going to arraign me tomorrow.

152:36Don't come.

152:37Don't come.

152:38I said, see what's going on, but don't show up.

152:42Of course, she's there next morning.

152:43Her and her dad.

152:45And she's back in the back crying.

152:47They're reading off the charges.

152:49I'm under $300,000 bond, everything else.

152:55And that's it.

152:59They throw me in a cell.

153:01Meanwhile, more charges keep coming in.

153:04And it's like 10, 12 charges a day at that point.

153:10And I'm trying to call her to make sure she's all right.

153:13And does it get through?

153:16So I spent three months in jail.

153:19And during that three months, she visits twice.

153:21I get like three or four phone calls to her.

153:26Looking back now, I understand why.

153:28Back then, it was like, I'm the victim.

153:29Why doesn't she talk to me?

153:31But now I understand why.

153:35Hell, the girl loved me too.

153:37She found out I was this piece of shit.

153:39And after a week in county jail, two agents

153:44fly in from New Jersey, two Secret Service guys.

153:47Pulled me out of cell, looked at me, and they were like,

153:50we've got your laptop.

153:51And I was like, yeah.

153:52And he's like, well, have you got anything on your laptop?

153:55And I was like, yeah.

153:56He's like, you're going to be charged for it.

153:57I was like, I figured.

153:59And then he looks at me, he's like,

154:01can you do anything for us?

154:05And I told him my exact words were, look,

154:07you let me get back with Elizabeth.

154:08I'll do whatever you want me to do.

154:11And he looks at me, he's like, we're going to get you out.

154:14I was like, all right.

154:15So they let me sit there for three months

154:17to get a taste of it and get me out.

154:21My sister, they have the bond reduced to $1,000.

154:25My sister pays the $1,000 bond.

154:27By this point, she's disowned me.

154:28And because I'm dating the stripper.

154:31And Denise bonds me out.

154:36The person that I call immediately is Elizabeth.

154:40I'm out.

154:41And she's like, I'll be there.

154:43I was like, OK.

154:44So it's like 11 o clock at night.

154:49I'm in the parking lot of the Charleston County jail.

154:53Me and a Secret Service agent standing there.

154:55And Elizabeth had a friend that owned a limo company.

154:58So she pulls up in a limo, gets out, pops the trunk,

155:04gets these two plastic containers out

155:06that have my clothes in them, drops them off the pavement,

155:12comes over, hugs me, call me later.

155:16Gets in the car, drives off.

155:18I'm sitting there crying like a baby.

155:20Agent looks at me, is that your fiancee?

155:23I'm like, yeah.

155:23And he's like, I am so sorry.

155:25And I'm like, yeah.

155:28I had to.

155:30She sounds fascinating.

155:32Pull up in a limo.

155:36I had $30 in my name at that point, $30.

155:40The agent had to pay for my hotel room that first night.

155:43So he drops me off after paying for the hotel room,

155:45buy me something to eat.

155:47Soon as he drops me off, I take that $30,

155:50walk a half mile to Walmart, buy a prepaid debit card

155:53so I can start back in tax fraud.

155:56Soon as I get back to the hotel room, call Elizabeth,

155:58beg her to come see me.

156:00She comes to see me, and we talk most of the night,

156:03and convince her to give me a chance.

156:05I tell her that everything's going to be all right.

156:07They're going to hire me.

156:09I'm going to be this big consultant.

156:11Lies, lies, just so she'd get back with me.

156:14And she's like, OK.

156:16And so we move from Charleston.

156:20The field office is in Columbia, South Carolina.

156:24And I'm breaking the law.

156:27Even before I start working with them, I'm breaking the law.

156:30And so they've got me in the office, the field office.

156:34They got this big war room in there.

156:36I'm on a laptop, outside line, laptops hooked up

156:39to a 50 inch plasma monitor on the wall.

156:43They've got a desktop sitting directly next to me,

156:47outside line, two Secret Service officers in the room

156:50at all times with a South Carolina law enforcement officer.

156:54My job is 46 hours a day, surfing the web,

156:59picking up targets, intel, teaching them

157:01how cybercrime operates, everything else like that.

157:04For the first two weeks, they are extremely diligent.

157:08They pay attention to everything that's going on,

157:10ask questions, everything else.

157:12But the problem is that that shit gets boring real quick,

157:17because I'm very fast online doing that.

157:20So they're like, what the hell is he doing?

157:22And it gets tiring looking at a guy just doing that shit.

157:25So after two weeks, they get lazy and bored.

157:28And they start watching porn instead of watching me.

157:34At the same time, they've got a keylogger.

157:37And they've got Spectre Pro and Camtasia,

157:39keyloggers and taking snapshots of everything that I'm doing.

157:43Every night, it goes on a DVD rom on a spindle.

157:46So I'm like, they're not going to go through that shit.

157:51So I'm like, fuck it.

157:53Start breaking the law from inside the Secret Service

157:55offices while they're in the room.

157:57Why not?

158:00That continues for 10 months.

158:03At the same time, the relationship with Elizabeth

158:06fell apart, completely fell apart.

158:12Do you have an understanding of why?

158:14Because her heart got broken because there was lying.

158:18It was the trust.

158:19She felt like she did a lot to sacrifice for the relationship.

158:23You've got a woman there that she had even said it.

158:33She was like, she had told one of her friends

158:38we were out having dinner one night.

158:41And this was before I got arrested.

158:42She told one of her friends that I was the only guy that ever

158:47asked her to stop using drugs.

158:49Yeah.

158:51Yeah.

158:52Yeah, I have to say that part of the story is so powerful.

158:57And then that she chose to do it, and she chose to stop.

159:03And she told me that there was one instance she told me

159:07that if she didn't marry me, she'd never be married.

159:10And as far as I know, she's never been married.

159:15And so it started to fall apart there.

159:17Yeah, because I was that piece of shit.

159:23Still, you didn't take a step.

159:25By the way, can I just say how just moving it is,

159:29how honest you are.

159:30But thank you.

159:32Thank you for being that person.

159:34But at that time, there's still that lying.

159:38Oh, man, yeah.

159:39Yeah.

159:39Yeah.

159:40So it's falling apart.

159:44She wants to start going to strip clubs.

159:46And I'm like, fuck it.

159:49Why not?

159:50We'll go.

159:51So we start going to strip clubs,

159:52and she'll come back and get wasted.

159:55And we'll have sex, what have you.

159:58And one night, she looks at me, and she was like,

160:07I think it'd be funny if you got a blow job

160:10from somebody else.

160:12And that got me.

160:15That got me.

160:16I was like, to me, that was the final straw right there.

160:20I was like, she doesn't care for me anymore or anything else

160:23like that.

160:25We've been going to strip clubs, so I

160:27started dating another stripper.

160:29And she knew something was going on.

160:33And she looks at me one day, and she's like,

160:37why don't you just tell me that it's over?

160:39And I looked at her, and I said, it's over.

160:41We're done.

160:42And I told her, I was like, look, I said, whatever you want.

160:48We were renting an apartment.

160:49I was like, whatever you want in here, take it.

160:53And I said, not only that, but I'll

160:58make sure you got money for several months

161:02so you're all right.

161:04And I was like, just leave me my TV

161:07and leave me some plates and stuff.

161:11So I go to work that day at the Secret Service,

161:15come back that night, and she's taken everything

161:19and left a picture of herself in the bedroom on the floor.

161:22I'm like, OK, I guess I deserve that.

161:26She's got, I like her.

161:28She's got a sense of humor.

161:29Yeah, she was cool.

161:30She was cool.

161:33I'm giving her $1,000 every two weeks

161:36or some shit like that.

161:37And it gets to the point, because I'm

§20Transcript · 2:41:40–2:49:59

161:40doing this tax fraud from inside the offices.

161:43Well, the debit card companies are pinging the cards.

161:47They start to realize that, hey, some son of a bitch

161:49is stealing money using our debit card.

161:51So they start to shut down the cards

161:53before I can pull cash out.

161:54So I start not to have the money to send to her.

161:57And I'm like, so she calls, and she's like, look,

162:01I have to have money.

162:02And I was like, well, look, I'm doing what I can.

162:05You promised money.

162:06And I was like, look, if you knew

162:08what I was doing to get this money,

162:10you wouldn't be asking that.

162:11And she's like, I need money.

162:13My rent's behind by a month right now.

162:16And I'm like, your rent's behind?

162:18She's like, yeah.

162:18So I was like, OK, so I pick up the phone,

162:21call the rental office.

162:23And I was like, I just want to make sure that I'm sorry

162:27I'm behind on the rent for this apartment number.

162:29Oh, no, that rent's paid up three months.

162:33It's like, OK, hang up, call Elizabeth back.

162:35I was like, you're behind on the rent.

162:38And she was like, yeah.

162:39And I was like, funny, they just said

162:42you're up on it three months.

162:43And she gets quiet, and she's like, well, you lied to me, too.

162:47And I was like, you're right.

162:50I did.

162:51I did that.

162:52I was like, but look, I can't do it anymore.

162:54And that's the last time I spoke to her right there.

163:00What happens is I was breaking law

163:05from inside the offices.

163:07I had a buddy that his name was Sean Mims out of Los Angeles.

163:12I had taught him how to do tax return fraud.

163:16I had told Sean, I go missing, I go missing for three months.

163:19I told him if I ever went missing not to contact me.

163:22And so I go missing, then I show back up online.

163:26First day, he contacts.

163:28So he becomes a target.

163:29And they identify him pretty quickly at that point.

163:33He's set to be arrested sometime in March of six.

163:38That's when he's set to be arrested.

163:40Operation Rolling Stone was the name of the operation.

163:43Nine people were supposed to be arrested that night.

163:45So Secret Service goes and arrests this guy.

163:50They search his apartment and don't find anything.

163:53The apartment manager comes out and explains to him

163:56how Sean has done all kinds of work to the apartment.

163:58As a matter of fact, he brought in $30,000 worth of Italian tile

164:03to put in the apartment that he's renting.

164:06And by the way, last night he had a UHaul out here

164:09and took out a whole shitload of stuff.

164:11So Secret Service comes back in.

164:15They look at me and they're like, we

164:17need you to take a polygraph.

164:19And my answer was, I ain't taking a polygraph.

164:22So they're like, well, we'll throw you back in jail

164:25if you don't.

164:25And I was like, call my lawyer.

164:26Lawyer gets me on the phone.

164:27He's like, you don't have to take the polygraph.

164:30I was like, well, good, I'm not going to.

164:32But they will throw you back in jail.

164:33And I was like, don't want to do that.

164:35And he's like, have you done anything?

164:39And I was like, yeah.

164:41And he's like, well, you can try to pass the polygraph.

164:46I'm like, OK.

164:48So I slipped out.

164:49I was like, let's take the polygraph.

164:51They asked three questions.

164:52The questions were, have you talked to anybody?

164:56Have you been on a computer outside of the offices?

164:58Have you talked to the press, which

165:00I was interviewing with a New York Times

165:02writer the entire time?

165:03And then have you contacted or warned anybody

165:05about investigations?

165:07And I failed polygraph completely.

165:09So they revoked the bond, took me back down

165:12to Charleston County, throw me into jail.

165:15Three days later, Secret Service shows back up

165:19and pulled me out of a cell.

165:21It's Jim Ramacone and Bobby Kirby.

165:23And I mean, honestly, they were good men.

165:27And they gave me chances upon chances to do the right thing.

165:30And I was not ready to do that.

165:33And Jim Ramacone and Bobby's in there.

165:36And Bobby, I mean, Bobby was a friend.

165:39I mean, he truly was.

165:40Later on, a couple of years ago, I had a chance to have lunch

165:50with a man.

165:51And I told him I was sorry for everything I did to him

165:55because I got him and another agent fired.

165:58And I told him I was sorry for what happened.

166:01And he told me then, he's like, we were your friends, man.

166:05We were truly your friends.

166:07So they were good men.

166:08They wanted to help.

166:09Yeah.

166:10They wanted you to be a good man.

166:12Yeah.

166:13What got me so damn bad is I told him,

166:17I was like, man, I'm trying to be a better guy.

166:19And he's like, Brett, you always were a good guy.

166:22You just didn't know it.

166:24Fuck.

166:25People like that, we need people like that in this world.

166:28Yeah.

166:30You need somebody to basically believe that you

166:33can be a good man.

166:35So Jim Ramacone pulls me out.

166:37He's the second in charge in South Carolina.

166:39He's got the Miranda waiver in front of him, right?

166:43And he looks at me.

166:43He's like, I'm playing hard ass.

166:45Bobby's over here looking distraught and like a hurt dog.

166:49And Jim's like, here's the way this is going to work.

166:52He said, you're going to tell me everything you've done

166:55the past six years, or I'm going to make it my mission in life

166:58to fuck over you and your family.

167:01And he said, not just this case.

167:03Once you get out of prison, I'll hound you

167:05the rest of your life.

167:07Then he slides the Miranda waiver over,

167:09and he's like, now you want to talk?

167:11And I looked at him, and I was like, nope.

167:15He was like, he gets up, gets all red in the face,

167:19storms out on the way out.

167:20He's like, fuck you very much.

167:23So I go back to the cell.

167:24A week later, I was only under state charges.

167:28A week later, judge rules they revoke the bond improperly.

167:33Wow.

167:36Reinstates the bond.

167:37Nobody calls the Secret Service to tell them I walk out.

167:42I walk out.

167:43I was dating this stripper, and I told my mom.

167:46I was like, well, if they're going to fuck me,

167:49they're going to have to find me.

167:52She just went on the move.

167:53Yeah, I called this stripper girl up.

167:55I'd given her like 60K, some bullshit like that.

167:58And I told her, I was like, Kim, I need some money.

168:01And she was like, what?

168:03I was like, look, I said, give me $1,000.

168:06I'll give you back $3,000 in two weeks.

168:08She was like, OK.

168:09So I met her in Augusta, Georgia,

168:11and got the $1,000 from her and started driving west on I20.

168:16No idea where to go to, anything else.

168:18Got to Dallas.

168:20There was a prepaid debit card supplier in Dallas.

168:23Went in, walked in the office, convinced the guy,

168:26social engineering, convinced the guy

168:27to give me 60 prepaid debit cards without a driver's

168:30license, without payment, anything else he did.

168:33And that started the run.

168:35I ended up stealing.

168:36From that, I stole like 160K profit,

168:39used that to buy a Jeep Cherokee.

168:41And the idea was to steal enough money

168:43to bug out to Florianopolis, Brazil,

168:47and set up shop down there, and do it again.

168:51That was the dream.

168:52That was it.

168:53That was it.

168:53So I was on the run for four months, stole $600,000.

168:58I was in Las Vegas, Nevada.

169:00One day, I had stolen the night before.

169:02I had stolen 160K out of ATMs.

169:05Went in the next morning.

169:06I woke up, signed on to cartersmarket.com,

169:09which was ran by Max Butler, the ice man.

169:12And there's my name, US Most Wanted on it.

169:16And that gets your attention.

169:18That was my real name with the US Most Wanted beside of it.

169:21Nobody knew my real name in that environment at all.

169:24But then they did.

169:25And it was talking about me being

169:26part of the Secret Service, Operation Anglerfish,

169:29everything else.

169:31So of course, they're all like, everybody's after you.

169:33They're like, oh, yeah, we're going to get this son of a bitch.

169:36So I sat there looking at it.

169:38And I was like, said it out loud.

169:39I was like, well, Mr. Johnson, you've

169:41made the United States Most Wanted list.

169:42What do you do now?

169:44And I was like, I'm going to Disney World.

169:47Literally.

169:48Literally.

169:49Literally.

169:49Said that out loud.

169:51So loaded up the Jeep, drove from Las Vegas

169:54to Orlando, Florida, and got the two annual passes,

§21Transcript · 2:49:59–2:58:29

169:59one to Disney World, the other one to Universal Studios.

170:02Paid for a timeshare.

170:05They were building these new timeshares right off

170:07Universal Drive, building these brand new timeshares,

170:10paid for a timeshare in nine months, cash.

170:13I was like, we take cash?

170:15Yeah, we take cash.

170:15There's $12,900.

170:18Then it wasn't furnished.

170:19So I went down to a furniture store,

170:20bought $30,000 in furniture.

170:22They had seized a DVD collection of mine worth $30,000,

170:27bought that back, and proceeded to go to Disney World

170:31every day.

170:32And that lasted about six weeks.

170:35They used a trigger fish, is what they use.

170:37Nowadays, it's called a stingray to find me.

170:42So one day, it was like 1030 in the morning on Saturday.

170:45September 16 was the day, 2006.

170:48Yeah, 2006, September 16.

170:50I was used to the builders coming around knocking,

170:54making sure everything was all right.

170:55So I was asleep, heard this knock at the door,

170:59and get up, look through the keyhole, nobody's there.

171:02You know, people, nobody's there.

171:03I was like, huh.

171:04Open the door, step out into the hallway.

171:06Walking down the hall is Bobby Kirby,

171:09another South Carolina guy and a Orlando Orange County cop.

171:14And they turn around, and they're like, hey, Brett.

171:17And I'm like, hey, Bobby, how are you?

171:19And it's like, we're good, how are you?

171:20And I'm like, I'm fine, would you like to come in?

171:23He was like, let's put you in cuffs first.

171:25And I was like, that's probably a good idea.

171:28He was like, he walks in, he's like,

171:33have you got anything in here?

171:34And I was like, yeah, there's $120,000 in the bedroom.

171:37And he was like, seriously?

171:39I was like, yeah, that and an AK 47.

171:42His face goes white, and he's like, you've got a rifle?

171:44And I was like, no, I'm kidding with you.

171:48He was like, OK.

171:50So they throw me in jail in Orange County,

171:54and they give me diesel therapy.

171:57And diesel therapy is, it took like two weeks

172:01to transport me from Orange County, Orlando,

172:04to Columbia, South Carolina.

172:06And what happens is, is you stop at every county jail

172:08you possibly can, go through the processing, which

172:11is about six hours.

172:13Once you get to your bunk, hey, time to transport you.

172:18They do that on purpose?

172:19On purpose, on purpose.

172:21Wears you down mentally and physically and everything.

172:24I get to Columbia, South Carolina.

172:26Now, while I was at Orange County, what happens is,

172:29this inmate, because we were in federal holding,

172:32this inmate, he looks at me.

172:33His name was Yeti.

172:35And he's like, hey, man, you know,

172:36the only time you get off in federal prison

172:38is the drug program.

172:40I was like, well, man, I don't use drugs.

172:42And he's like, you can find a drug problem, can't you?

172:45And I was like, I can find a drug problem.

172:48So what happens is, is every county jail I stop at

172:51on the way to Columbia, I tell them I'm alcoholic and cocaine.

172:56So by the time I get to Columbia, South Carolina,

172:58they've got this paper trail of Mr. Johnson

173:00requesting help for drugs.

173:04I had hired Strom Thurmond's son as an attorney.

173:09They make me drop him because I paid for him

173:12with illegal funds.

173:13So they give me a public defender.

173:15He gets a psychological evaluation order for me.

173:19So psychologist comes in county jail, four hour interview.

173:22About halfway through, he looks at me,

173:24he's like, you using these type of drugs?

173:25I was like, yeah.

173:26What do you use?

173:27Cocaine.

173:28Smoke or snort?

173:29Snort.

173:29How much?

173:30An eight ball a day.

173:32That's a lot.

173:33Yeah.

173:34Do you have any trouble out of that?

173:36Yeah.

173:37I can't get an erection.

173:40And he looks at me.

173:41And I'm looking at him like, because I had gotten

173:44that shit from Boogie Nights.

173:49Finally, I'm like, is that right?

173:51And he was like, it could happen.

173:54I was like, OK.

173:57That makes it into my pre sentence report.

174:00So all federal inmates, probation office

174:03and prosecutor, they do this detailed background check

174:07to basically tell the judge how much time to give you.

174:09So that drug bit with that interview makes it into the PSR.

174:14So day of interview, I mean, day of sentencing.

174:17I had pled guilty, day of sentencing.

174:21The prosecutor, he stands up, and this dude

174:24is screaming at this point.

174:26And he's like, Mr. Johnson's manipulated

174:28the Secret Service.

174:30He's manipulated the prosecutor.

174:31Then he points at the judge.

174:33And he's manipulating you today, Your Honor.

174:35We insist on the upper limits of the guidelines.

174:38Well, I've been telling everybody in the jail

174:40that if they give me any more than 60 months,

174:43I am not staying.

174:45So we're like, OK, sure.

174:47So the judge looks at me.

174:50She's like, I agree.

174:51I'm like, she says, 75 months.

174:55So I looked at my lawyer, and I was like,

174:57can you get the drug program for me?

174:59He's like, I don't know why I ask.

175:00So he stands up.

175:02Your Honor, will you order the drug program for Mr. Johnson?

175:05The judge says, no, but I'll recommend he gets evaluated.

175:09So the Secret Service had told her, hey, he's full of shit.

175:12So she's like, no, but I'll recommend he gets evaluated.

175:15I looked at my lawyer, and I was like, what does that mean?

175:16He was like, you're probably not going to get it.

175:19I'm like, how soon can you get me to the camp?

175:22And he was like, well, if you don't appeal,

175:24I can get you there pretty quick.

175:26My exact words were, fuck the appeal.

175:29Get me to the camp.

175:30I'll take it from there.

175:31He looks at me like I'm the biggest idiot in the world.

175:35I get sent to, because you can get a camp recommended.

175:38I have friends, family members look

175:41for camps that don't have a fence around them.

175:43And we settle on Ashland, Kentucky.

175:47Six weeks later, I'm in Ashland, Kentucky,

175:49and pull up there, 14 foot fence, a razor wire on top.

175:53And I'm like, I don't climb fences, so I go in.

175:58First question I ask is, are there any jobs

176:01outside of the fence?

176:02And he was like, guards like, well, you

176:04can work in the national forest.

176:05And I'm like, no, I'll die out there.

176:07He was like, well, you could do landscaping.

176:09I'm like, I can run a weed eater.

176:13Two days later, I walk into the landscaping office,

176:16and the cop, this is this genius of some

176:19of these people and institutions.

176:21The cop, behind his desk, the entire wall

176:25is a blown up photo of the compound and the outlying area.

176:29So I can literally sit there and plot where I'm going.

176:35My dad, I hadn't spoken to that man in years.

176:40And he shows up at my sentencing and stands up

176:44in front of the judge.

176:45And he's like, Your Honor, I want to make

176:47sure Brett gets a good start.

176:49He can live with me when he gets out, everything else.

176:52Looking back, the man meant that.

176:54And I just thought it was bullshit at the time.

176:58So he starts to visit me in prison.

177:00I mean, yeah, in prison, he starts to visit.

177:02And about the third visit in, he looks at me.

177:05He's like, I've been reading about you online.

177:07I was like, yeah.

177:08He's like, yeah.

177:09He's like, that's a lot of money you made.

177:11And I was like, yeah.

177:12He's like, you think you can teach somebody

177:15how to do that?

177:16And I'm like, so what I used to say,

177:21and again, it's this thing of really coming

177:25to terms with things.

177:26What I used to say was I thought my dad was back in my life

177:31and that he was just trying to use me.

177:35The truth of the matter was is that my dad

177:38hadn't really seen me except in that frame of crime,

177:43being that criminal with my mom, everything else.

177:46I really think that's how the man was trying

177:48to communicate with me.

177:50He wanted to connect with you in the places

177:52where you know, where you love, where you're interested in,

177:54where your addiction is, essentially.

177:56And what I did is I manipulated the man

178:00into helping me escape.

178:01So I agreed to teach him how to do tax fraud.

178:04And in return, the only money he had to his name,

178:06he had $4,000 cash.

178:09So I manipulated him into giving me that

178:11and to dropping me off a change of clothes, a cell phone,

178:13and a driver's license.

178:14The only driver's license he had was my driver's license,

178:17Brett Johnson.

178:18So I was at the camp for, I don't know, six, eight weeks.

178:22And the hardest worker that landscaping had ever seen.

178:26At one point, the cops got me on a mountainside

§22Transcript · 2:58:29–3:05:59

178:29with a broom, sweeping off the mountain.

178:31I'm like, yeah, we'll do that, absolutely.

178:34So you're building trust with the guys there.

178:36Yeah, working my ass off.

178:37And in six weeks, I take off.

178:39And I lasted, I think, two, three weeks, something

178:42like that.

178:43US Marshals, I made it 100.

178:45They called you escaped.

178:45Yeah, escaped.

178:46Escaped.

178:47US Marshals, they're canvassing a three state area.

178:50They found me, I think, 250 miles away.

178:52It's like Lexington, Kentucky.

178:53They found me in Lexington because I had

178:55to use my real driver's license.

178:57I had a laptop.

178:59I had prepaid debit cards.

179:00And I had stolen identity information.

179:03And the way it got me was I had dyed my hair this flaming red.

179:09I had this deep tan.

179:10I didn't look anything like myself.

179:11And I was at a hotel, had the curtains open, saw this guy.

179:18I was on the laptop, saw this guy walk by.

179:21He walks by the window, and he stops.

179:24And then he backs up.

179:26He looks inside.

179:28He knocks on the window.

179:30I look up at him.

179:31He's like, you.

179:32I was like, me?

179:33He's like, you.

179:34Then he pulls out this badge, and he points at it.

179:37He's like, and then he points at the door.

179:39Now!

179:41So I was like, oh, OK.

179:42So I open up the door.

179:44He's like, US Marshals Service.

179:47So they arrest me.

179:49How did they track you down?

179:50They canvassed that area.

179:51They talked to every hotel, everything else.

179:54So it's like a traditional, like, they were just tracking?

179:57Traditional police work is what it was.

179:58So it wasn't like, from the internet,

179:59they kind of got something?

180:01I don't know, just straight police work.

180:02Good, good, good, good.

180:03US Marshals are outstanding in everything they do.

180:05So they arrest me.

180:06I go to a, I'm initially held at a county

180:09jail in Moorhead, Kentucky.

180:11And that, man, that was one hell of an experience there.

180:14But then I'm transferred after sentencing on that.

180:17So sentencing, here's the weird thing.

180:20So I spend like, I think, two or three months at the county

180:23jail in Moorhead, Kentucky.

180:26Get sentenced.

180:27At my sentencing, it happens so quickly

180:31after the initial sentencing that they

180:34use the exact same presentence report.

180:36The report that's got all that drug shit in there.

180:39So at my sentencing, prosecutor's there,

180:42Secret Service is there, judge, me, and my attorney.

180:47Prosecutor stands up.

180:48He's like, Your Honor, we would like

180:50it if you would consider that when Mr. Johnson was arrested,

180:54he had a laptop, he had all this information with him,

180:56looks like he was engaged in identity theft yet again.

181:00Judge looks at the prosecutor, says no.

181:03Says, hey, if you were going to charge him with it,

181:05you should have charged him with it.

181:06I'm only considering the escape.

181:08Then he looks at me.

181:09He's like, Mr. Johnson.

181:11He said, it looks like by you keeping your mouth shut right

181:14now, you're really saving yourself

181:16a pretty serious charge.

181:17And my response was, yes, Your Honor.

181:20And he was like, then he opens up the presentence report,

181:22he's fingering through, and he's like,

181:24it also looks like before you got

181:26involved with all these drugs, you were a pretty good citizen.

181:30I was like, yes, Your Honor.

181:33And he's like, so here's what I'm going to do.

181:34He said, I'm going to give you 18 months on the escape.

181:38I was like, OK.

181:39He said, I'm also going to give you,

181:41no, it's 15 months on the escape.

181:42He said, I'm going to give you 15 months on the escape.

181:44He said, and I'm also going to order the drug program for you.

181:48I was like, yes, Your Honor.

181:51So the drug program gives you a year off,

181:54and it gives you six months and halfway house.

181:59So by escaping, I got out of prison three months earlier

182:03than what I should have gotten out of it.

182:05So the original thing about drugs worked in the long term.

182:11The interesting thing with that, and this

182:12was the best lie I ever told, honestly,

182:14the best lie I ever told.

182:17I spent eight months in solitary confinement, eight months.

182:21And that's an experience.

182:24Because you ain't got no books for the first month or so,

182:27then they give you a King James Bible.

182:30Yeah.

182:31And then for a month, no books.

182:34No books for a month.

182:36This is a pretty small and.

182:38Six by nine room.

182:39Six by nine.

182:40Yeah.

182:41No books.

182:41No books, no paper, no pen, no pencil.

182:44You're alone with your mind.

182:45You got a mat, a toilet.

182:48What's that like?

182:50You sleep as much as you can.

182:52You're sleeping 16, 18 hours a day is what you're doing.

182:55What about, were you thinking about even just going back

183:00like Elizabeth?

183:01You think about.

183:02You go through all that.

183:03The whole thing.

183:04Through all that.

183:04Every bit.

183:05Your mom, too.

183:06Yeah.

183:07Going through every single bit of that.

183:08And so you're supposed to get out an hour a day.

183:12Law says you're supposed to get out an hour a day.

183:15That's the law.

183:16That's not the way things actually happen.

183:18What actually happens is you're lucky to get out an hour a week.

183:21You take a shower twice a week, and that's it.

183:25You get a phone call once a month.

183:26Oh, so you don't get to see nature.

183:28Don't see anything.

183:29You're getting solitary.

183:31And it takes about a week.

183:34The first week is the roughest.

183:36You're bouncing off the walls that first week

183:38because you can't sleep, can't do anything else.

183:40Then you start to adapt to it after a while.

183:43When that book does arrive, you're happy as hell to have it.

183:46I'm well versed in King James Bible.

183:49So you're happy to have it.

183:51Then finally, you get other books

183:53that come in from that point.

183:56Spent eight months at that.

183:57And they send me out to a real prison, Big Spring, Texas,

184:02West Texas, where have you been out there?

184:07No.

184:07Man.

184:08But I could tell.

184:10Prairie dogs and tarantulas is what it is.

184:13No kidding, it gets so hot that warnings

184:16come on the radio telling you not to drive on certain streets

184:19because they're melted.

184:21That's Big Spring.

184:23So if you've seen the movie From Dusk

184:26Till Dawn, the opening scene is in Big Spring, Texas.

184:30So it's hot.

184:31Yeah, very hot.

184:33And that's where I find out what a real prison is.

184:35And it's not ran by guards.

184:38Prisons are ran by inmates.

184:40And that's a fact.

184:41So you're met at the door by whatever race you are

184:47is what happens.

184:48So Big Spring is a converted Air Force compound.

184:50It's a disciplinary prison.

184:52So you get the bad guys are in there.

184:54So I go through processing, and I'm walking up to the unit,

185:00and I'm met at the door by a guy named Nick Sandifer.

185:03He's the treasurer of the Aryan Brotherhood.

185:06And first question out of his mouth

185:08is, any more white guys come in?

185:10And shit, I didn't know.

185:11I was like, hell, I don't know, four or five?

185:13Next question is, what are you in here for?

185:17My answer was, because I'm like, I got no worries.

185:19My answer was, computer crime.

185:20Smiled at him.

185:22Turns out, wrong thing to say, because computer crime is not

185:27credit card theft or hacking or any bullshit like that.

185:30Computer crime in prison is child pornography.

185:34So tell him that.

185:35He looks at me like I'm a piece of shit,

185:37goes and gets his buddies.

185:38They circle around.

185:40What are you in here for?

185:41I like how the Aryan Brotherhood has lines.

185:45They're like, oh, yeah, this is child porn.

185:47That's it.

185:48That's the bad guy.

185:49They circle around.

185:50They're like, what did you say you're in here for?

185:53So I'm sitting there trying to explain it to them.

185:55They're like, you tell a good story.

185:57You still said this.

§23Transcript · 3:05:59–3:13:42

185:59Computer crime basically really does

186:02mean usually child pornography.

186:04In prison, yeah.

186:06And what you see, and that's one of things you find out,

186:08the guys that are going in there for child porn,

186:10they will tell them it's credit card theft.

186:14So yeah.

186:15Right.

186:15They've learned.

186:16So I'm that guy.

186:17But you also don't, I mean, for people

186:19who are just listening to this, you don't exactly look

186:22like the typical computer hacker.

186:24That's true.

186:25That's true.

186:26That's very true.

186:27But I don't look like the pedophile either.

186:29That's right.

186:30That's right.

186:31But it's like it doesn't make it seem like you're, I mean,

186:34I guess you're not wearing a hoodie,

186:36and you're not like emo, dark.

186:41The way it actually works in prison,

186:43they won't attack you until they know.

186:47So they have to see paperwork, which now in federal prison,

186:50you don't get transported with paperwork because of that.

186:54So they have to see paperwork, or a guard

186:57will tell them what you're in there for.

187:00Guards will tell who the pedophiles are.

187:02So none of the guards told them that it was anything.

187:06So for the first month, they think I am,

187:08but they're not doing anything because they

187:09don't know for sure.

187:10At the end of the first month, I'd

187:12been talking to Kevin Polson over at Wired Magazine

187:15about Max Butler.

187:17He does an article about that.

187:19It shows up in Wired Magazine.

187:20So at the end of the first month,

187:21Wired Magazine hits a compound, front cover, all the story.

187:24You would think.

187:25You would think it saved me.

187:27So I'm reading the article, really happy about it.

187:29So what happens is four o clock is mail call.

187:31Four o clock's a stand up count nationwide.

187:34After four o clock is your mail call.

187:35They hand out all the mail for the day.

187:37So the mail comes, I get the magazine.

187:38I'm reading through it.

187:39I'm like, well, shit, I'm good to go.

187:41Then it says, Brett Johnson, Secret Service informant

187:45in the article.

187:47So you're now a snitch.

187:49Which is right up there with the pedophiles.

187:51So we go to dinner after that.

187:55At dinner, you can hear it.

187:57You can hear the chat.

187:57We got a snitch.

187:58I think it's that guy over there.

188:01Warden, next day, shuts down the entire compound,

188:04calls me into his office.

188:06They got security there.

188:07They got the counselors there and everything else.

188:08Warden looks at me.

188:09He's like, did you give an interview to Wired Magazine?

188:12I'm like, yeah.

188:13He's like, do you not know they will kill you in here?

188:17I was like, he was like, do you feel safe?

188:21Well, I know if you tell me you don't feel safe,

188:24they transport you.

188:25Transport you means another eight months

188:27in solitary confinement.

188:28You start to see shit in solitary after a while.

188:31So I'm like, no, not gonna do that.

188:33So I'm like, completely safe.

188:34He was like, look, he's like,

188:37if anybody says anything to you, immediately come to us

188:42because they'll fucking kill you.

188:44So they do a locker search,

188:45try to confiscate the magazines.

188:47They can't.

188:48The next day, I walk into the unit.

188:50There's Nick Sandefur laying on his bunk,

188:52magazine wide open reading it.

188:53I'm like, oh shit.

188:55Walked up to him.

188:56I was like, hey, Nick, what are you doing?

188:58He's like, oh, doing some reading.

189:00I was like, anything interesting?

189:01He's like, it's getting there.

189:03I was like, let me save you the trouble.

189:07Take the magazine, turn it over to the page.

189:08I was like, right there is what you're looking for.

189:10He was like, man, I already knew.

189:12I was like, do we have a problem?

189:15And he looks at me.

189:16He's like, is anyone on the compound you told on?

189:20I was like, no.

189:21He's like, until someone gets here, you snitched on.

189:24We're okay.

189:26I was like, okay.

189:28He's like, but I need you to do something for me.

189:32All right, so in federal prison, you gotta have a job.

189:35Everybody works.

189:36It doesn't matter what you do, but you gotta work.

189:37I got a job in education teaching a lit class.

189:42Every Wednesday, six to 8.30 PM, lit.

189:45And had all, every area on the compound

189:48signs up for the lit class.

189:50Had a couple of guards every now and then popped in.

189:52And did we teach lit?

189:54No, we taught fraud.

189:56Every Wednesday, six to 8.30 PM.

189:59That's how I didn't get my ass beaten.

190:02And my other job, I had two jobs with them.

190:04The other job, you get to the point, it's weird, man.

190:07You get to the point, people walking off the bus,

190:11you know immediately two groups of people.

190:14You know who the bank robbers are immediately.

190:16Just by them walking off the bus,

190:18you're like, that motherfucker's a bank robber.

190:20And you know who the pedophiles are immediately.

190:23So my job as the white guy was to approach

190:27the white pedophiles and have a conversation.

190:29And the conversation was basically,

190:31hey, don't know what you're in here for.

190:34Don't care what you're in here for.

190:37But if you got some sort of fucked up charge,

190:40you need to tell me.

190:43If you tell me, everything's gonna be all right.

190:46If you don't tell me, you see those guys over there?

190:49If you start to associate with them

190:51or they start to talk to you,

190:52and then they find out you're in here on something,

190:55they're gonna kill you.

190:57And what are the things, pedophile?

190:59Pedophile, rapist, anything that harms children,

191:02harms women, anything like that.

191:04And there are, it's like the mob,

191:07there's rules, there's an ethical code.

191:10Even if you have the division between races on all that,

191:15you still have these lines drawn.

191:17And there's a hierarchy too.

191:19Very, very much so.

191:20And what that looks like in prison,

191:22depending on the, it depends on the security class

191:25that you're in, what level prison.

191:27But at that prison, what that looked like

191:29was you're not allowed to talk to anybody.

191:33You're not allowed to watch television.

191:35You can go to the library.

191:37You don't associate with anyone except your own type.

191:40If you do anything like this, we will kill you.

191:44If someone wants to extort you,

191:47we will do that too and you won't tell on us

191:51or we'll kill you.

191:52So that's the way that works at that point.

191:55And everybody quickly large this.

191:58Quickly, quickly.

191:59And so typically the guys would say,

192:02I just wanna do my own time.

192:03That would be the line.

192:05And it's like, okay, don't mess with him, all right?

192:09Every now and then you'd have somebody lie

192:11and that would come with those types of consequences.

192:14I got to see, while I was there, saw two people murdered,

192:20saw, went through three prison riots

192:23and through my entire tenure in prison, saw four suicides.

192:26The people who got killed, it was,

192:29so we had, outside you had this track,

192:32a third of a mile track.

192:33You walk it counterclockwise.

192:35And inside of the track, you got two handball courts.

192:38So of an evening that happened both times,

192:42all of us would be walking, doing our exercises.

192:44And at the top of the key, like a flock of birds,

192:47you'd see all the inmates start to migrate down

192:51toward the gate.

192:52So the first time you see that, you see that migration,

192:55you look up in the distance and one of the inmates

192:57got another inmate down and he's just hammering his head

193:01right into the pavement, like that right there.

193:04Well, guards don't stop that because a guard may get hurt.

193:07So a guard is 15 minutes coming out to stop that

193:11until everything's over.

193:12By that point, the guy doesn't have a head.

193:15They shut the compound down and this is what happens.

193:17So you shut the entire compound down.

193:20They make two lines of the inmates.

193:22And what happens is the inmate walks into a room,

193:25they shut the door behind the inmate,

193:27guard asks them two questions.

193:28First question is, did you see anything?

193:30The answer is no.

193:31Second question is, if you had seen anything,

193:34would you say anything?

193:35Answer is no.

193:36Guard then says, get the fuck out.

193:38And that's it.

193:40Anybody that stays in any longer than that

§24Transcript · 3:13:43–3:21:32

193:43is automatically suspect.

193:45So there was one incident, I remember this Hispanic guy,

193:49he's in there for a few minutes.

193:51And everybody's like, what's going on?

193:55So his people then call him over,

193:59explain to us what went on.

194:01And it happens like that.

194:03It's fascinating because you talked about

194:05the network of trust in the cyber crime community.

194:10And here's a network of trust

194:13in the prison crime community.

194:16And trust.

194:17Trust matters.

194:18Trust drives everything at the end of the day.

194:21The riots that I went through,

194:23the first riot, man, you're scared to death.

194:26Scared to death.

194:27You know, you've got the cops dressed up

194:29in the Ninja Turtle outfits,

194:30you've got the rubber bullets,

194:33the tear gas canisters, all that crap.

194:35You got the inmates that are raising hell.

194:37Scared to death.

194:39The second riot, you calm down.

194:42Second riot, you start to notice.

194:44This is racial riot.

194:46This is typically, and almost always,

194:48it's Hispanics and African Americans.

194:50So you get to detect what is the motivation

194:53for the riot, what is the reason,

194:55and that gives you some calm.

194:56That's exactly right.

194:57So the second riot, you start to notice this.

194:58Hey, man, this ain't me.

195:00This ain't our group.

195:02Third riot, no shit.

195:03Third riot, you lay in your bunk.

195:07You let them wage war all around you,

195:10and every now and then you have an inmate

195:12that'll run up to you and he'll point to a locker

195:13and say, is that your locker?

195:14And if you tell him yes, they leave it alone.

195:16If you say it's not my locker,

195:17they'll break into it and steal everything out of it

195:20and go from there, and that's what happens, but.

195:23So you did your time for five years.

195:25Five and a half.

195:26Five and a half.

195:27You made it out.

195:28Made it out.

195:29I went through, I told you it was a good lie that I told.

195:32I went through the residential drug abuse program.

195:35It's a nine month intensive therapy,

195:37and the way I got to that, this counselor at Big Spring,

195:42he bought this.

195:44He wanted inmates to be educated.

195:46He was a really good guy.

195:48So he wanted inmates to be educated.

195:49He got a discount on a game theory class set.

195:55So he gets all these discs and everything,

195:56and he's asking, does anybody on the compound

195:59know anything about game theory?

196:00And somebody says, if anybody does, it'll be Brett Johnson.

196:04So he comes up to me one day at my buggy.

196:07He's like, are you Brett Johnson?

196:09I was like, yeah.

196:10He was like, do you know anything about game theory?

196:12And I was like, yes, I do.

196:15So I start rattling off Prisoner's Dilemma

196:17and everything else.

196:18He's like, well, you teach a class?

196:20So I start teaching that.

196:21I start teaching inmates public speaking

196:24and to make friends with this counselor.

196:26So it gets time where I'm supposed to be transferring out

196:29to this drug program that they only had in Fort Worth,

196:32and the transfers are taking like four or five months.

196:36That's four or five months I could be out free.

196:39So I went up to him one day and I was like, look,

196:41his name was Keely.

196:42I was like, look, man, I said, is there any way

196:45that I can get transferred out any sooner?

196:47And he looks at me and he's like, Brett, I cannot help you.

196:50And I was like, I appreciate that.

196:52Thank you so much for even trying.

196:53So he said that a week later, I'm on a bus

196:58by going to Fort Worth.

196:59So he got me to Fort Worth.

197:00I got it.

197:00Yeah.

197:01I love it.

197:02So it was a nine month program,

197:0424 hours a day of cognitive behavioral therapy.

197:06Had nothing to do with drugs.

197:07It was all peer study stuff and CBT training.

197:12And honestly, it's the best thing that could ever happen.

197:15Truly is.

197:16So that part, what was the thing that changed you as a man?

197:21Is it the solitary confinement?

197:23Was it the years?

197:24Was it losing the people you loved?

197:28Or was it that behavioral therapy?

197:30It's a combination, man.

197:31It's a combination.

197:32It was, so my sister disowns me.

197:36The only person I had in my life.

197:38I mean, me and my sister, that's it.

197:41I mean, yeah, I loved Elizabeth.

197:42I love my wife now, but it's...

197:46Me and my sister, we went through all that shit together.

197:49So Denise disowns me.

197:50She doesn't talk to me for an entire year

197:52when all this stuff happens.

197:54And after I get arrested on the escape,

197:58she ends up driving seven hours

198:01to come see me to tell me she loves me.

198:02And I don't see her again for five and a half years.

198:04Yeah.

198:05So that's really the first turnaround.

198:07Took me two and a half years in prison

198:10to accept responsibility.

198:12That was amazing that she did that.

198:14Yeah.

198:15She's down.

198:16Yeah.

198:17She did that.

198:18Yeah, she's something.

198:19She's something.

198:19Yeah, she saw me for 10 minutes,

198:20tell me she loves me and then I don't see her again.

198:23Planted the seed.

198:24Yeah.

198:24Yeah.

198:25So...

198:26But yeah, you had time to think over those years.

198:29Took two and a half years to realize

198:31that I didn't commit crime

198:32because of stripper girlfriends or wives or family.

198:35I committed it because I wanted to, chose to.

198:38And that's the first turnaround.

198:42Second turnaround is the CBT training.

198:45It didn't really hit while I was in prison.

198:50I went through it and they ingrained it in you,

198:52but until you choose to make it work, it doesn't work.

198:56So I got out in 2011, didn't wanna break the law, did not.

199:00And I was under three years probation,

199:02couldn't touch a computer.

199:04I had a job offer from Deloitte

199:07to run a cyber crime office in the UK,

199:10which that was a no.

199:11Now you're not moving and that's a computer idiot.

199:13So then I had a job offer from Know Before,

199:18a phishing company, couldn't take that.

199:20I got to where I was trying to apply for fast food jobs.

199:24That's a computer, can't touch that.

199:26Okay, then what about a waiter's position?

199:28Well, that's a computer and access to credit cards, idiot.

199:31Can't touch that either.

199:33So literally could not get a job, could not.

199:38Doing food stamps, I had a roommate

199:40that paid half the rent.

199:42They tell you when you leave prison

199:43to get a job in something you care about

199:46and you won't recidivate, couldn't get a job.

199:48And what I had was a cat, and Monster the Cat,

199:53that was the cat's name.

199:55And I had enough money to feed that little guy

199:59and didn't have money to buy toilet paper for the apartment.

200:02So I was on Panama City Beach.

200:05How long were you living like this?

200:07It was a steady decline,

200:08because remember I taught my dad how to commit tax fraud.

200:11So he bankrolled a lot of that until he couldn't.

200:14And then from there, it's like, what the fuck do you do?

200:18So I didn't want to go into computer crime at all.

200:20And I ended up shoplifting toilet paper, man.

200:25Shoplifting toilet paper.

200:26Just like for the basics, the basics of survival.

200:30So about the same time I had a friend that, this guy,

200:35I'd been dating the same type of women I had been dating,

200:37you know, the unhealthy ones, the hot unhealthy ones.

200:41Yes, love, that's how that works.

200:45So I had a friend post an ad for me on Plenty of Fish.

200:49And this woman responds, my wife, she responds.

200:53And the pictures I had taken were these prison type pictures,

200:56you know, the serious like, they were there.

200:59She sends me a message of, why aren't you smiling?

201:01And my response was, that is my happy face.

201:04So we start talking and we started dating.

201:09And she's that second saving thing, man.

201:13I ended up moving in with her.

201:14I was going broke.

201:15I was about to get kicked out of the apartment and everything

201:17else.

201:17And she didn't say it, but I think she knew it.

201:20And moved in with her.

201:26And I got a job.

201:27And the job I got, my probation officer

201:30let me have a cell phone.

201:31I was going through Craigslist.

§25Transcript · 3:21:32–3:30:19

201:32This guy was advertising for landscaping.

201:35Called him up.

201:35His name was Dustin DeRamus.

201:38Called him up.

201:38And he's like, come on down, talk to me.

201:40So he was running this business, him and his brother

201:42were, out of his house.

201:43So I'm sitting there talking to him for about 20 minutes.

201:46He looks at me.

201:46He's like, can I ask you a question?

201:48I was like, yeah.

201:49He's like, are you on the run or something?

201:51So I'm like, no, why?

201:53And he's like, well, you just don't look

201:55like the kind of guy that do this.

201:57So I told him.

201:59I was like, this is who I am.

201:59This is what I've done.

202:01And he looks at me.

202:03He's like, man, I got to think about that.

202:05So he tells me to go on home.

202:08That was a Friday.

202:09Sunday evening, he gives me a call.

202:11And he was like, Brett, if I hire you, will you actually work?

202:17And I told him, I was like, Dustin, if you give me a job,

202:20I promise I'll work my ass off.

202:22And he's like, show up 6 o clock.

202:24I was like, all right.

202:25So my job was to push a lawnmower 10 hours a day,

202:29five days a week for $400 a week, and busted my ass.

202:33I hit it so hard, I would come in of a night and pass out,

202:40wake up the next morning, and hit it again.

202:42And it got to the point, this dude

202:47ended up offering me to come in and partner with his business.

202:51His brother dropped out.

202:52And by that point, I'd learned everything

202:54on the business and everything.

202:56And he was like, if you'd like to come in,

202:58I'll cut you in half.

202:59And I was like, Dustin, I can't do it, man.

203:02Because I wasn't making any money.

203:03He didn't want to pay me anymore until he was able to do more.

203:07And I thought I found another job doing something else.

203:12And in a speech, I say it got cold and the grass

203:14started to stop growing.

203:15The truth of the matter was I thought I found another job.

203:18Guy was offering to pay me $1,500 a week doing the sales

203:23for oil rig training, was what it was.

203:26And I accepted the job.

203:29I quit working for Dustin.

203:31And the guy, I told him before he even offered me a job,

203:36I told him my criminal history because I

203:38was required to do that.

203:41So I was supposed to start work.

203:42Well, he calls me and tells me he can't hire me.

203:44So I'm out of work.

203:46And Dustin's already hired somebody else by that point,

203:49so I can't go back with him.

203:51And I'm that guy again, man.

203:58It's important for me to show value in a relationship.

204:05So Michelle was the only one working.

204:10I'm like, I got to do something.

204:12And I get it in my head.

204:14I was like, if nothing else, I can just

204:16bring food in the house.

204:17She was only making, I think she was, I mean,

204:20we had it hard, it was just her working.

204:23And I was like, if nothing else, I can bring food in the house

204:27and get on the dark web, get some stolen credit cards,

204:32start ordering food.

204:33Well, it gets worse than that.

204:36She's got two sons there.

204:38So I'm like, well, they need clothes.

204:40So they start stealing clothes.

204:42And it continues like that.

204:44I get arrested.

204:45I get arrested on a food order.

204:48And Michelle didn't know what I was doing.

204:53So she had been to work, and she was coming back from work.

204:55I get arrested.

204:56And I'm like, they let me make a phone call.

204:59And I call her, and I say, come to the police station.

205:01I've been arrested.

205:02And she shows up.

205:04And she didn't know I'd been doing that.

205:06My probation officer, of course, he didn't know anything else.

205:11At my sentencing for that, probation officer

205:14was there, prosecutor, the judge, US Marshals, Michelle,

205:19and me.

205:21Michelle stands up, and she tells the judge

205:23that I'm a better dad to her kids

205:25than their actual father is.

205:26And by that point, I'm crying.

205:33Probation officer stands up.

205:35And he was like, we think Mr. Johnson's a good guy.

205:39We think this is a one time thing.

205:40Prosecutor says the same thing.

205:43Judge sentences me to one year.

205:46Probation officer stands back up.

205:49And he was like, Mr. Johnson, Judge,

205:52if you can give Mr. Johnson a year and a day,

205:55he can get the good time and get back to his family sooner.

205:59So the judge amends the sentence to a year and a day.

206:01So I served 10 months.

206:03They sent me back to Texas.

206:04And that's when I find out that Michelle didn't need me

206:08for what I could give her.

206:10She just wanted me for me that entire time.

206:12She stands by me the entire time.

206:14I do my 10 months, get out.

206:16We get married after that.

206:18And they kill probation.

206:20So I can touch a computer.

206:21They tell you, they were like, you know,

206:23inmates, a felon, if nothing else, he can sell cars.

206:28Well, it turns out you can't.

206:30You can sell cars if you're a drug dealer.

206:32If you're the guy that steals all the money and people's

206:34information, no, fuck no.

206:35You can't get a job selling cars.

206:37So can't get a job.

206:39Cannot.

206:40And to this day, Lex, I know what my triggers are.

206:45I know what it would take to get me back

206:46into committing crime.

206:48So, and I knew I'd go so far at that point.

206:50So I looked at Michelle and I was like,

206:51let me see what I can do.

206:53Signed on to LinkedIn, reached out to this FBI super cop

206:56named Keith Malarski out of the Pittsburgh office.

206:58He was involved with my arrest and some associates

207:02and everything else and sent him a message.

207:05And the message was, you know,

207:06hey, I respect everything you did.

207:07Think you did a great job.

207:09By the way, I'd like to be legal.

207:12And dude responded within two hours.

207:16Two hours, he gives me references, advice,

207:19takes me in under his wing, everything else like that.

207:22And from that point, man, it was the head

207:24of the identity theft council did the same thing.

207:28Card not present group hires me to speak.

207:31Microsoft hires me to consult with them.

207:34And the Microsoft hire established enough trust

207:37in the industry that I was all right from that point.

207:42So now you're helping in many ways,

207:45fight the very guy that you used to be.

207:48So big picture advice.

207:52What, given that you were that guy,

207:55how do we fight cyber crime today

207:58and in the next five years, 10 years, 20 years, 50 years?

208:01What advice do you have to individuals, to companies,

208:04to governments of what, and also to Elizabeth,

208:13like the humans, human beings that love,

208:19that live, that are friends with cyber criminals?

208:24There's so many lessons to really be had from that.

208:30To me, the lesson, one of the big lessons to me

208:33is you can't serve two masters.

208:38If you're that guy that is committing crime

208:41or that person that's addicted,

208:43or you're in love with somebody that's addicted or has that,

208:48they don't love you.

208:49They love that addiction that comes first.

208:51It's always gonna come first.

208:53So you have to realize that.

208:54You have to know when to cut somebody off,

208:59when to end something, that knowing

209:02that they're not gonna change until they decide to change.

209:07At the same time, you gotta realize

209:08that the only reason I was able to turn my life around

209:12is because people took that chance on me.

209:14That's really the only reason.

209:16They believe that there's a good person in there.

209:18Yeah, if Malarski hadn't responded,

209:21if I hadn't had my sister, my wife,

209:23these companies that initially gave me that chance,

209:26my ass would be back in prison for 20 years.

209:28I have no doubt about that at all, all right?

209:31So you have to realize that.

209:34Cybercrime, a lot of companies that I talk to,

209:37they don't really understand or appreciate

209:41that networking aspect, that trust aspect

209:44of how criminals establish trust with each other,

209:47how they work together.

209:48A lot of companies think that it's a single player

209:51that's out victimizing them.

209:52And when you really break down how cybercrime operates,

209:55that you've got a group of individuals

209:57that are working together to hit you,

209:59but not only hit you,

210:00but they share and exchange information freely.

210:03Companies don't do that.

210:04You've got privacy concerns,

210:05you've got competitive edge concerns, everything else.

210:07Companies don't share information across the board

210:09like criminals do.

210:11Criminals do that.

210:13You have to appreciate that.

210:13You have to understand that big statistic

210:17that 90% of your tax use known exploits.

§26Transcript · 3:30:19–3:38:45

210:19It's not the stuff we don't know about,

210:20it's the shit we do know about.

210:22We're not doing anything about.

210:24So the way to defend against cybercrime

210:26is like there's a lot of low hanging fruit

210:29that you should fix.

210:30A lot of that.

210:31A lot of that.

210:32Sort of a lot of basic stuff

210:33that's already vulnerabilities,

210:34update the system security.

210:35Now that doesn't take care of SolarWinds or CNAP

210:39or anything like that.

210:40It doesn't.

210:41But those instances, I mean, okay, that's a big instance.

210:46I mean, it is.

210:47But in the full spectrum of, especially in the future,

210:52because there's more and more companies

210:56that are coming online, they're becoming digital.

210:58And it's just more and more and more.

211:01And those vulnerabilities in terms of human nature,

211:03so for social engineering and the actual outdated systems,

211:07all of it.

211:08Some of it, I guess is, I mean, you're exceptionally good

211:11at this is educating on the social engineering side,

211:14is educating people in companies that like.

211:16You've got to do that.

211:18And companies have to, you know, I made that point

211:20that they never report to law enforcement.

211:23That's companies and individuals.

211:25You know, I've worked with Fortune 50 companies

211:27that will not press charges.

211:30Instead, they'll have that insider or that criminal

211:34sign an NDA, they'll pay them off.

211:36And we won't mention this shit anymore.

211:39You have to be, you have to press charges.

211:41You have to report, you have to raise the awareness

211:43of everyone in the group.

211:45You have to be, it's that idea.

211:47And I've talked about that before

211:49of understanding your place in that cyber crime spectrum.

211:52The way a criminal will victimize you

211:55depends on who you are and what you do

211:57as a person and as a business.

211:59So you have to understand that, design security around that.

212:02You know, we've got 7,500 security companies out there.

212:05A whole lot of them are snake oil salesmen.

212:07A lot of them is going to tell you that

212:09we're the one stop solution, but you're not, you're not.

212:13You're a tool, all right?

212:15And you may have a very good tool,

212:17but it's not the only tool that's needed

212:19to protect against the attacks that are out there.

212:22And we have to be open and honest

212:24about that kind of stuff if we're not.

212:25So I guess defending defense is not just like one tool.

212:29It's a process of just like a diversity

212:33and just constantly educating people.

212:36Absolutely.

212:36So it's the social side, it's constantly,

212:40because there's so many probably attack vectors

212:42in terms of the software that you have.

212:43If you look at it, that attack surface,

212:45you can't plug everything.

212:47It's too damn large to plug everything.

212:50But you can do the best job you can possibly do,

212:52but it takes a variety of tools to do that, all right?

212:55The idea, and Arcos is big about that,

212:59but the idea is to take the cost of fraud

213:04to the fraudster so high that they basically

213:06try to pick another target, all right?

213:08And that's the idea that you want.

213:09You want it to be not worth the criminal's time

213:12to hit your company.

213:14What about white hat hacking?

213:16So like hacking for good,

213:21sort of testing systems and then giving companies

213:24the vulnerabilities as you find them?

213:27I think it's outstanding.

213:28I do, I think that, I think pen testing,

213:29white hat stuff is outstanding.

213:31I truly do.

213:32I think that you have to.

213:36It has to be tempered with what is reality as well though.

213:40All right, we've got a whole industry of people

213:43who try to sell RFID wallets,

213:45that I don't know of many RFID hackers out there

213:48on the criminal side, to be honest with you.

213:50Yeah, so some of it is just like a psychological

213:52safety blanket that's not actually providing any protection.

213:58By the way, you wrote on LinkedIn something about ID me.

214:04What is it?

214:05Why is it a problem?

214:07I was going down a rabbit hole with you.

214:08I was wondering if you were gonna mention that.

214:10You know, they lost, I guess I was partially responsible

214:14for them losing an $86 million contract.

214:17What was the contract with the government?

214:19With the IRS.

214:19Just with the IRS.

214:21So what is it?

214:22So ID me is an identity, okay, backtrack.

214:25ID me is a marketing company that wants to say

214:28they're an identity verification company.

214:30I just wanna bring this up to see you get angry.

214:32Okay.

214:35I'll tell you what my issue is.

214:36My issue is.

214:37So it's a company that's used for authentication

214:42by the IRS, I guess.

214:43IRS, Social Security Administration, VA,

214:47at 1.23 state unemployment offices, few other services.

214:51So I guess the idea is that you would be able

214:54to unlock your account or authenticate yourself

215:00as a human being by using your face or something like that.

215:04Or private information.

215:06They've got a tiered system with verification.

215:08They've got, you can do, they've got a free system

215:12which is questionable where you submit an ID

215:14and it's been shown, several bypasses have been shown.

215:17And I don't wanna talk about their security horribly bad

215:20because I wanna be honest, there are bypasses

215:22for a lot of security systems out there.

215:24All right?

215:26The issue that I have with ID me is that

215:30their policies are somewhat questionable.

215:34I don't care if you're a private company

215:36that has those policies in place.

215:37But if you're a government agency

215:40and you as a citizen are entitled to a benefit

215:43or a service of that government agency,

215:46and then the government agency forces you

215:49to give up your complete identity profile

215:52to a private company.

215:53And then that private company uses that profile

215:55for marketing purposes, to further profit, things like that.

215:59I have a huge issue with that.

216:01I don't care if you're a private company that does that.

216:03I just don't think that citizens need to be forced

216:05into doing that in order to get a benefit

216:07or service that they're entitled to.

216:09So that's my big issue.

216:11So that, I mean, given how much value,

216:14how much we talked about the value of identity,

216:17you don't think that should be handed over lightly?

216:19No, absolutely not.

216:21And who would have thought that Brett Johnson

216:23would ever become a privacy advocate?

216:25But here I am.

216:29I mean, it's just, people don't understand

216:33or appreciate the value of who they are.

216:38And certainly you've got a host of companies,

216:41ID means not the only one,

216:42but you've got some of these companies that say,

216:44well, we strip out the PII of the individual.

216:48We're just using the biometrics

216:49and the sites they're visiting and things like that.

216:51That's identity.

216:53You can still ping that one unique individual

216:55out of all, using that information.

216:57Stripping out the PII,

216:58you can still ping who that individual is.

217:00So having lived a life of crime for many years,

217:05I'm sure you've connected indirectly

217:08to a large number of very dangerous people.

217:11Directly and directly.

217:12Yeah.

217:14But the network indirectly is even larger, right?

217:17Oh yeah, oh yeah.

217:18Are you, and I apologize for this question,

217:22are you ever worried for your life, for your wellbeing?

217:27Like having seen a world that's really dangerous

217:30in ways that's not, that operates in the shadows.

217:38Like I said, when we started Shadow Crew

217:41and started that initial cybercrime business, that world,

217:46violence wasn't there.

217:47It came in later.

217:49Now violence is inherent in the system,

217:51to do the Monty Python bit.

217:52It's part of it.

217:55Yeah, the mob, the mafia are now part of this whole thing.

217:58Cartels are part of it.

218:00Yeah.

218:00Drugs are inherently intertwined in cybercrime marketplaces

218:05because of the profit potential.

218:06And with that comes a lot of violence as well.

218:08Yeah, the cartels already brought the violence

218:12that they're good at from the 20th century.

218:14Absolutely, absolutely.

218:14Into the technology of the 21st century.

218:16Now, do I worry about that?

218:20It's interesting that my family worries about that.

218:25All right.

218:26I think I may be just too involved in it

218:28to appreciate that type of danger.

218:32But my family worries about that.

218:35They do.

218:36Do I think it's a possibility?

218:38I'm the guy that says what needs to be said.

218:41I've built my trust in this industry

§27Transcript · 3:38:45–3:46:38

218:45by not being scared of calling out companies and individuals

218:51and not being scared of targeting criminals

218:53or criminal groups.

218:54Your honesty as a human being emotionally

219:00and intellectually is really refreshing.

219:03It's a gift and thank you.

219:05Thank you for doing that.

219:06Is there a device you can give to young people today

219:11about life?

219:13You broke many rules, all the rules.

219:19Some rules should be broken.

219:21So if you look at somebody young today

219:23in high school and college,

219:24thinking how they can break the rules legally

219:30and live a life that's something they could be really proud

219:34of, what would you say?

219:35Biggest lesson I've learned.

219:39You want your life to be one where you're helping people

219:43and not hurting people.

219:45And that really hit me the first time I walked into Quantico.

219:49You see the brightest minds in the United States

219:54who give up a lot of money,

219:57the opportunities of a lot of money

219:58because they believe in helping people.

220:01Where I spent a career just hurting and harming individuals,

220:05that's a hell of a lesson.

220:07And I'm glad I'm there,

220:09but I would tell people out there,

220:12it's fine to want money.

220:13It's fine to do that.

220:14It's fine to test systems.

220:16It's fine to circumvent the rules

220:18if you're not breaking the law.

220:19It's fine to do all that.

220:20I like doing that, all right?

220:22But if you've got the mindset,

220:23if you can just adhere to the mindset of helping people

220:26and not hurting people,

220:28I think you'll be all right at the end of the day.

220:31What gives you, again, given the dark web,

220:35given all the dangers out there,

220:37what gives you hope about the future,

220:39looking into five, 10 years, 50 years?

220:43I mean, hope for human civilization.

220:45If we do all right, if we make it out of this century,

220:53what do you think would be the reason?

220:57That's a damn good question.

220:59Because I mean, we've got a lot of bad stuff going on.

221:01We've got a lot of reasons.

221:03If I asked you the other question of

221:05how do you think human civilization would destroy itself,

221:08I'm sure you have a lot of answers.

221:10You know what gives me hope is

221:12that you see people working together.

221:16The COVIDs have been a little bit different

221:19because I think too many people

221:20wanted to play politics with it.

221:22That's been the heartbreaking thing about COVID

221:24is it's in many ways pulled people apart.

221:26I mean, because a virus involves

221:29kind of being afraid of each other

221:33because I mean, that was a scary thing.

221:35People talk about pandemics in that way

221:38that you're afraid of other humans.

221:40That is the most terrifying thing.

221:41It's not the destructive nature of what it does to your body.

221:44It's just that it pulls people apart.

221:46And then you realize how fundamental

221:49that human connection is to human civilization.

221:51Absolutely, absolutely.

221:53But you know, as human beings,

221:55we do, when things really get bad,

221:59when things really get bad,

222:00we do tend to respond and group together.

222:03We do that.

222:04When there's injustice, we see it, we rise up.

222:09I wake up every morning and I watch Fox News and CNN

222:15so I can be pissed off at everyone.

222:17All right, so the division, the outrage,

222:21they're really feeding.

222:22They want you, they want you to be angry.

222:25Yeah, that's what causes me to spare

222:27and what I think that, you know, we just need to.

222:30Elizabeth was very good.

222:32She taught me one hell of a lesson

222:34because before I met her, I was a news hound.

222:37News would be on all the time.

222:38A couple of channels of it.

222:40And she was the woman who didn't watch the news at all.

222:45And I didn't understand that back then, man.

222:48But now I do.

222:49You know, now I'm like, it's pretty smart, you know?

222:52Don't need to listen to that bullshit as it is.

222:55That's why I love reading history books.

222:59I just, I feel like that's the right perspective

223:03on take on modern times.

223:05You know, how will this time be written about

223:07in the history books and react to that?

223:10Don't the daily ups and downs of the outrages,

223:15which is getting worse and worse

223:17in terms of how quick the turnaround is

223:19in terms of the news.

223:20I'll tell you what, I'm sitting here.

223:22I appreciate you talking to me.

223:24I do, because, you know, I talk about that relationship

223:28and everything.

223:29It's really been this kind of realization

223:32for me on a lot of things.

223:33So I really appreciate you asking those questions

223:34and everything, maybe be able to talk about that.

223:36I love it that you value, first of all,

223:41you're self aware how important love

223:43is in a human being's life.

223:46It can make you do some of the best

223:48and some of the worst things in this world.

223:50And it's good to think about that.

223:51It's good to think about that.

223:53That is what makes us human, is that connection

223:55and that love for each other.

224:00What do you think is the meaning of life?

224:01This big, ridiculous question.

224:03Why the hell, what are we all here for?

224:05I don't think it is ridiculous, man.

224:07To me, that meaning of life is finding out

224:09that lesson that we need to help each other.

224:13If you talk, you ask about security,

224:15how do you get to say that?

224:16But, you know, everybody's worried about themselves.

224:19The way you solve that security problem

224:21is it takes everybody looking out for everyone else.

224:26That's how you solve that problem.

224:29And however you take, whatever journey you take

224:32to discovering that point.

224:34Yeah, I mean, with me, I've been asked a few times,

224:37do you regret anything?

224:38Would you change anything?

224:40I've done a shitload of despicable things in my life.

224:46But I'm at a point in my life where I like who I am.

224:50And I know that I am doing exactly

224:51what I'm supposed to be doing with my life.

224:53So, would I change anything?

224:55As bad as a lot of that shit has been, I wouldn't.

224:59It made you who you are.

225:00Yeah.

225:01The whole of it, the whole mess.

225:03That's trite to say that, but it's true.

225:05That's the weird thing, it's true.

225:09Yeah.

225:10Also, you mentioned that you're thinking of launching a show.

225:13What's it gonna be called?

225:14Cause you've done a couple of podcasts.

225:16You're incredibly good at this.

225:17You're so good at this.

225:18I've done a couple.

225:19I'm on a lot of podcasts and everything like that.

225:22I had the fraud cast with a friend of mine,

225:25Carice Hendrick.

225:26And that ended because of a difference of opinion.

225:29Depending on who you ask, one of us was an asshole.

225:34Yes.

225:35And it may have been me.

225:36Yeah.

225:36But then I did the Anglerfish podcast,

225:38which that was, I gotta be honest with you, Lex,

225:40it was completely directionless.

225:41And it was Brett Johnson getting lazy.

225:43Yeah.

225:45So I ended that.

225:46The Brett Johnson show is launching.

225:50That's the new one.

225:50That's the new one.

225:51That's what the new one's called.

225:52And, you know, I.

225:53What do you think I'm doing with it?

225:56Making a difference, for one thing.

225:58But it's gonna be talking about cyber crime security,

226:00helping people.

226:03Interviews.

226:03Interviews.

226:04A lot of it's gonna be solo.

226:06Now I'm calling it the Brett Johnson show.

226:08I mean, because it's gonna handle crime,

226:10talk to criminals and how they turn their lives around

226:12to a degree as well.

226:13But there's some shit I wanna bitch about too.

226:15Yeah.

226:16So figure it out.

226:16I can tell you're good at this.

226:17I'm a fan already.

226:18I wanna listen.

226:19I wanna subscribe.

226:20You should too.

226:21You're launching it soon.

226:22Soon.

226:23Next week.

226:24Brett, you're an incredible human being.

226:26The honesty, the love.

226:29I could just see how much of yourself you put out there.

226:33One of the best public speakers I've ever heard.

226:36Definitely you should be in a Scorsese film

§28Transcript · 3:46:38–3:47:25

226:38about cyber crime.

226:41100%, I could tell you're a good actor.

226:43It makes perfect sense.

226:45Anyway, I really, I'm deeply honored

226:47that you'll spend your time with me today.

226:48I am, actually.

226:49Thank you.

226:50It was amazing.

226:51Thanks for listening to this conversation

226:52with Brett Johnson.

226:53To support this podcast, please check out our sponsors

226:56in the description.

226:57And now, let me leave you with some words

226:59from George R.R. Martin, from A Clash of Kings.

227:04A good act does not wash out the bad,

227:07nor a bad act the good.

227:10Each should have its own reward.

227:12Thank you for listening and hope to see you next time.

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