Michigan man sentenced for wire fraud and aggravated identity theft charges in Minnesota

A Michigan man has been sentenced to 60 months in federal prison for wire fraud and aggravated identity theft after purchasing nearly 2,500 stolen login credentials from a malicious dark web marketplace, U.S. Attorney Daniel Rosen announced last week.

Andrew Shenkosky, 30, used the stolen credentials to make fraudulent financial transactions and offered some for sale on other cybercriminal internet sites, the U.S. attorney’s press release said.

Details from the press release and court records state that from approximately February 2020 to November 2020, Shenkosky devised and executed a scheme while residing in Minnesota to defraud and obtain money through false pretenses. Shenkosky accomplished his scheme by purchasing and accessing stolen account information from the Genesis Market, an illicit online marketplace that was ultimately taken down by the FBI in or about April 2023.

Genesis Market compiled hundreds of thousands of stolen login credentials, including cellphone numbers, account numbers, email addresses, usernames, and passwords from malware-infected computers of victims across the world, and offered that stolen information for sale on the dark web.

Shenkosky purchased an account on Genesis Market using a cryptocurrency Coinbase account he fraudulently created in the name of one of his victims, using the victim’s driver’s license. Shenkosky went on to purchase 2,468 stolen credentials of various victims on Genesis Market. He then used the stolen data to, among other things, make an unauthorized withdrawal from one victim’s bank account without their knowledge or authorization and transferred the funds to a PayPal account under his control. He also attempted to withdraw money from other victims’ accounts, but the transfers were reversed. Shenkosky also offered and attempted to sell one victim’s stolen account data and personal information on a now-defunct cybercriminal forum named Raid Forums.

Shenkosky’s defense attorney requested in a presentence document a sentence of 36 months, which would have been a downward variance from guidelines, stating that Shenkosky has made progress in making lifestyle changes, including overcoming his use of narcotics and maintaining steady employment.

However, the Department of Justice recommended a sentence on the “high end” of the guidelines based on specific factors and characteristics in the case and noted that Shenkosky was a multi-convicted felon at the time of the crimes. Four other counts were ultimately dismissed under the plea agreement.

“Darknet marketplaces are a borderless powerhouse of criminal activity, allowing criminals like Shenkosky to steal money from unsuspecting victims and laundering the proceeds of their illegal activity,” said Chris Dotson, special agent in charge of the FBI Minneapolis Field Office. “Make no mistake, this significant sentence reflects the commitment of the FBI and our law enforcement partners to dismantle networks operating with criminal intent, and sends a clear and unambiguous message that we will continue to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe.”

Federal offenders must serve at least 85% of their sentence incarcerated before becoming eligible for parole. Shenkosky’s incarceration will be followed by two years of supervised release with special conditions, which include prohibited access to computers or online services without approval, no access to personal identifiers like Social Security numbers, bank account numbers, and credit card numbers, and several other conditions.

The case is the result of an investigation conducted by the FBI Cybercrime Unit and the FBI Minneapolis and Detroit Field Offices.

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Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.

Crime Watch MN

Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.