ALEXANDRIA, Va. – A federal grand jury returned an
indictment today charging eight Las Vegas residents with conspiring to violate
federal criminal copyright law by running two of the largest unauthorized
streaming services in the United States, resulting in the loss of millions of
dollars by television program and motion picture copyright owners.
According to the indictment, the defendants allegedly ran an
entity called Jetflicks, an online, subscription-based service headquartered in
Las Vegas that permitted users to stream and, at times, download copyrighted TV
programs without the permission of the relevant copyright owners.
The defendants reproduced tens of thousands of copyrighted
TV episodes without authorization, and distributed the infringing programs to
tens of thousands of paid subscribers located throughout the United States. At
one point, Jetflicks claimed to have more than 183,200 different TV episodes.
One of the defendants, Polo, left Jetflicks and created a competing site based
in Las Vegas called iStreamItAll (ISIA) that at one point claimed to have
115,849 different television episodes and 10,511 individual movies. Like
Jetflicks, ISIA offered content for a regular subscription fee to viewers
around the United States, and ISIA publicly asserted that it had more content
than Netflix, Hulu, Vudu and Amazon Prime. The two services were not only available
to subscribers over the internet but specifically designed to work on many
different types of devices, platforms, and software including numerous
varieties of computer operating systems, smartphones, tablets, smart
televisions, video game consoles, digital media players, set-top boxes and web
browsers.
According to the indictment, Jetflicks allegedly obtained
infringing TV programs from pirate websites around the world—including some of
the globe’s biggest torrent and Usenet sites specializing in infringing content
such as The Pirate Bay, RARBG and Torrentz—using various automated computer
scripts, often providing episodes to subscribers the day after the shows
originally aired on TV. Specifically, the defendants allegedly used
sophisticated computer code to scour global pirate sites for new illegal
content to download, process and store the shows, and then make those episodes
available on servers in the United States and Canada to Jetflicks subscribers
for streaming and/or downloading.
The defendants are: Kristopher Lee Dallmann, 36; Darryl
Julius Polo, aka “djppimp”, 36; Douglas M. Courson, 59; Felipe Garcia, 37;
Jared Edward Jaurequi aka “Jared Edwards”, 38; Peter H. Huber, 61; Yoany
Vaillant, aka “Yoany Vaillant Fajardo”, 38; and Luis Angel Villarino, 40.
According to the indictment, Polo was allegedly part of the
computer programming team that built Jetflicks but later left and started ISIA,
a competing service based in Las Vegas that offered not only television
programs but movies. Polo allegedly used many of the same automated tools that
Jetflicks employed to locate, download, process, and store illegal content, and
then quickly make those TV programs and movies available on servers in Canada
to ISIA subscribers for streaming and/or downloading. In fact, some of the
movies offered by ISIA were not yet available for authorized sale, download, or
viewing outside a movie theater.
All eight defendants are charged with conspiracy to commit
criminal copyright infringement and, if convicted, they face a maximum penalty
of five years in prison. The criminal copyright infringement by reproduction or
distribution and criminal copyright infringement by public performance charges,
with which Dallmann and Polo are charged, each carries a maximum penalty of one
year in prison. The criminal copyright
infringement by distributing a copyrighted work being prepared for commercial
distribution offenses, with which Polo is charged, carry a maximum penalty of
five years in prison. And, each of the charged money laundering offense carry a
maximum penalty of 20 years in prison. Actual sentences for federal crimes are
typically less than the maximum penalties. A federal district court judge will
determine any sentence after taking into account the U.S. Sentencing Guidelines
and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern
District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the
Justice Department’s Criminal Division, and Timothy R. Slater, Assistant
Director of the FBI’s Washington Field Office, made the announcement. Assistant
U.S. Attorney Alexander P. Berrang and Senior Counsel Matthew A. Lamberti of
the Criminal Division’s Computer Crime and Intellectual Property Section are
prosecuting the case.
A copy of this press release is located on the website of
the U.S. Attorney’s Office for the Eastern District of Virginia. Related court
documents and information are located on the website of the District Court for
the Eastern District of Virginia or on PACER by searching for Case No.
1:19-cr-253.
An indictment contains allegations that a defendant has
committed a crime. Every defendant is presumed to be innocent until and unless
proven guilty in court.
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