Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 1 of 38
`Case 2:20-cr900151-RAJ Document 1 Filed 09/16/20 Page 1 of 38
`
`
`
`Presented to the Court by the foreman of the
`Grand Jury in open Court,
`in the presence
`of the Grand Jury and FILED in the US.
`DISTRICT COURT at Seattle, Washington
`September 16, 2020
`
`,
`
`
`
`
`
`UNITED STATES DISTRICT COURT FOR THE
`
`WESTERN DISTRICT OF WASHINGTON
`
`AT SEATTLE
`
`UNITED STATES OF AMERICA,
`
`NO.
`
`CR20'151 RA]
`
`Plamtlff’
`
`INDICTMENT
`
`v.
`
`EPHRAIM ROSENBERG,
`
`JOSEPH NILSEN,
`
`HADIS NUHANOVIC,
`
`KRISTEN LECCESE,
`ROHIT KADIMISETTY, and
`NISHAD KUNJU,
`
`Defendants.
`
`
`The Grand Jury charges that:
`
`INTRODUCTION
`
`1,
`
`Amazon.com, Inc. is a Seattle-based company that operates the Amazon
`
`Marketplace, one of world’s largest online marketplaces. The Amazon Marketplace is an
`
`electronic commerce (or “e-commerce”) digital platform, on Which consumers can
`
`purchase goods, multimedia, and services, from online merchants. The merchants who
`
`make sales on the Amazon Marketplace include Amazon itself and “third—party” or “3P”
`
`sellers, the latter of Which are non-Amazon individuals and entities.
`
`Indictment
`
`United States v. Rosenberg, et a]. — 1
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`
`
`
`
`\OOOflam-PUJNH
`
`NMNNNNNNNP—‘D—‘P—‘P—‘l—‘D—‘J—‘t—lr—‘b—A
`
`ooflmm-th-b—‘OKOOOQONm-RWNt—‘O
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 2 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 2 of 38
`
`\oooqoxmqsmww
`
`NNNNNNNNNHi—HHHHHHHH-OOQONMLUJNHOKDOOQONU‘I-DUJNHO
`
`2.
`
`Since at least 2017, the Defendants, and others known and unknown to the
`
`Grand Jury, have conspired to pay, and have paid, over $100,000 in commercial bribes to ‘
`
`complicit Amazon employees and contractors (collectively referred to herein as “Amazon
`
`insiders”). In exchange for bribes, and the promise of such bribes, the Amazon insiders
`
`baselessly and fraudulently conferred tens of millions of dollars of competitive benefits
`
`upon hundreds of 3P seller accounts that the Defendants purported to represent in their
`capacity as prominent “consultants” to 3P sellers. Through this scheme, the Defendants
`
`intended to cause harm to Amazon, and to 3P sellers and consumers on the Amazon
`
`Marketplace, including by depriving Amazon of the exclusive use and confidentiality of
`
`its internal business information, interfering with Amazon’s ability to ensure the safety
`
`and authenticity of goods sold on the Amazon Marketplace, and impairing consumers’
`
`access to accurate, reliable information about merchants and’products on the Amazon
`
`Marketplace.
`3.
`
`The Defendants are members of an interdependent community of 3P
`
`sellers, consultants to 3P sellers, and Amazon insiders who have accessed and coopted,
`
`without authorization and for private financial gain, the computer systems, processes, and
`
`information that regulate day-to—day operations of the Amazon Marketplace. Through
`
`the use of bribes, and the promise of bribes, the Defendants, and Amazon insiders,
`
`engaged in the following conduct, among other conduct:
`
`‘
`
`a.
`
`Stealing Amazon confidential business information: Defendants,
`
`and other 3P sellers and consultants, bribed Amazon insiders to send them terabytes of
`confidential information that the insiders misappropriated from Amazon” 3 protected
`
`networks, including a trove of internal standard operating procedures (SOPs) and Wikis. V
`
`The stolen files included, among other things, the formulae for the algorithms that power
`
`the Amazon Marketplace search engine, Amazon’s product—review rankings, and the
`
`coveted “buy boxes” that list default sellers on particular product listings; the criteria that
`
`Amazon considers when determining whether to suspend or reinstate accounts or product
`
`listings; Amazon’s internal notes (or “annotations”) about hundreds of 3P accounts; and
`
`Indictment
`United States v. Rosenberg, el‘ al; — 2
`
`UNITED STATES ATTORNEY
`700 STEWART STREET’ SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 3 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 3 of 38
`
`thousands of consumers’ and employees’ identities and contact information. The
`
`Defendants, and other 3P sellers and consultants, derived substantial commercial benefits
`
`from the misappropriated information, including by sharing and selling it within their
`
`professional networks.
`
`b.
`
`Reinstating suspended 3P accounts and products: Defendants,
`
`and other 3P sellers and consultants, bribed Amazon insiders to reinstate merchant
`
`accounts and product listings that Amazon had suspended in response to customer—safety
`concerns, counterfeiting complaints from intellectual-property holders, the merchants’
`manipulation of product reviews, and other violations of Amazon’s policies and codes of
`conduct. Since their baseless and fraudulent. reinstatement, the previously suspended ,
`
`merchant and product listings have generated over $100 million dollars in total revenue
`
`from sales on the Amazon Marketplace.
`
`0.
`
`Circumventing Amazon restrictions on 3P accounts: Defendants,
`
`and other 3P sellers and consultants, bribed Amazon insiders to circumvent and/or waive
`
`Amazon—imposed limitations and fees relating to the amount of inventory, including
`
`hazmat inventory, oversized inventory, and long—term inventory, that 3P sellers may store
`
`at Amazon’s warehouses and fulfillment centers. The Amazon insiders also helped 3P
`
`sellers and consultants defraud Amazon into approving the 3P sellers’ requests to sell
`
`restricted products, such as dietary supplements, also referred to as “ungating,” on the
`
`basis of fraudulent and forged supplier invoices.
`
`d.
`
`Facilitating attacksagainst 3P'sellers and product listings:
`
`Defendants, and other 3P sellers and consultants, bribed Amazon insiders to attack other
`3P sellers and those sellers’ prOduct listings, in order to gain an unfair competitive
`
`advantage over those victims and to settle other scores. To facilitate these attacks,
`
`Amazon insiders shared competitive intelligence about the victim sellers’ businesses,
`
`products, and advertising strategies, with 3P sellers and their consultants; used their
`
`inside access to Amazon’s network to suspend the Victim sellers’ accounts and product
`
`\OOOQQUI-PUJNl—I
`
`NNNNNNNNNHHl—‘l—‘Ht—AHHl—IHmflONM-hWNt—‘OKDOO,\]O\UIJ>~UJN>—‘O
`
`Indictment
`United States v. Rosenberg, et a]. — 3
`
`UNITED STATES ATTORNEY
`700 STEWART STREET” sums 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 4 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 4 of 38
`
`listings; and helped consultants flood the Victims’ product listings with content and
`
`fraudulent customer reviews designed to hurt sales.
`
`These attacks included self—styled “takedowns” against victim 3P
`
`sellers, through Which the Defendants, and other 3P sellers and consultants, adulterated
`
`Victims’ product listings vVith replacement, and in some cases lewd and offensive, content
`
`and images, designed to drive away consumers and intimidate the victims. Examples of
`such adulterated product listings are set f01th below:
`'
`
`_Flccu: Hmtcd Throw (flanker with Cunlrullcn "JVth,_
`ti.’
`‘
`'1"
`I
`n
`A
`
`m1 549,99 www-
`buInaunnurw’hut'
`
`1‘
`
`Us
`
`”21.. >
`In 5:0" syn-r”unlax1:...‘.-u:~~'n m\\
`h.»111' Mum mum“: ::
`1:
`0111.. Linux-.7...
`mum, mhuunmmg
`
`,
`
`.
`
`‘;ll“.alur
`a,_
`
`*>l<*
`
`-'thmm 9mm Illrnd re: 1309st (4h will: 5 Bulbun cm Per Serving .ou 12
`Strains a! Beard: lot Digrstiw Health.
`
`***
`
`Indictment
`United States v. Rosenberg, et a]. — 4
`
`UNITED STATES ATTORNEY
`70° STEWART STREET’ SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`OO\]O\U1-I>UJL\J)—*
`
`1o
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 5 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 5 of 38
`
`\DOOQONU‘I-b-UJNr—A
`
`
`
`NNNNNNNNNl—‘l—‘l—Al—‘D—‘r—ll—ll—‘k—‘l—‘locQQm-b-UJNt—‘OKOOOQQUI-PWNHO
`
`amazon
`~29" vne
`#1..
`'zll"
`
`l:
`
`t
`
`:
`
`,-
`
`-'
`
`l! -llw-v ‘.
`
`.
`
`@ Deliver to Joe — New Voyk 10015
`
`:xILon: GLDIAI,
`’i;
`_.
`= - FLAVORS
`
`'
`fitttt I33
`—
`_:em Diet Pills That \Vorl. - Vlelght L05: Suppzsmenu
`to Burn Fat r35! ~ flnnst (run-w and Mt Inbolism - n05! Pit-luv".
`Supplement le- Wuunvn .mrl Mun ‘ Hamru Duwu [$0 Caps-4h”.
`I‘h
`
`#pt‘ffl!
`
`FREE Delivery Tomorrow
`If you OldL‘l wuhln 1 3 hrs ‘1 nuns. Dela-ls
`In Stock.
`Sold by—and Fulfilled by Amazon.
`Gift-wrap available.
`
`The intended and actual impact of such adulteration attacks was to effectively
`
`incapacitate the 3P accounts.
`
`A.
`
`THE AMAZON MARKETPLACE
`
`4.
`
`The Amazon Marketplace consists of geographically defined online
`
`marketplaces, including a United States-based marketplace and a United Kingdom—based
`
`marketplace. Online consumers can browse millions of product listings on the Amazon
`
`Marketplace, place items in Virtual shopping carts, complete purchases using credit cards
`
`and/or other forms of digital payment, arrange for products to be delivered to addresses
`
`that they designate, and return products to Amazon in exchange for a refund. Amazon
`
`provides consumers with a centralized search engine, categorized hyperlinks, online
`
`directories, and other digital tools, in order to navigate the Amazon Marketplace. Using a
`
`standardized format and organization, every product listing sets forth the relevant
`
`Indictment
`United States v. Rosenbezg, et al. - 5
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`

`

`
`
`
`
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 6 of 38
`[Case 2:20-crL00151-RAJ Document 1 Filed 09/16/20 Page 6 of 38
`
`product’s attributes, appearance, price, customer reviews, and an Amazon Standard
`
`Identification Number (“ASIN”), an alphanumeric identifier assigned to each product.
`
`5.
`
`Merchants on the Amazon Marketplace consist of Amazon, as well as 3P
`
`sellers. 3P sellers pay Amazon fees in connection with making sales on the Amazon
`
`Marketplace. To facilitate 3P sellers’ operations, Amazon offers 3P sellers a range of
`
`additional fee—based services, including the “Fulfillment by Amazon” (or ‘_‘FBA”) service,
`
`through which Amazon stores inventory for 3P sellers, arranges for that inventory to be
`
`shipped to purchasers, and handles customer-service inquiries and returns. Amazon also
`
`assigns employees at its offices around the world to one or more “Seller Support” teams,
`
`1 2 3 4 5
`
`6
`
`7
`
`8
`
`9
`
`10 which assist 3P sellers.
`
`11
`
`6.
`
`When registering an account with Amazon, 3P sellers provide Amazon
`
`12 with identifying information, which may include an email address, a form of
`
`13
`identification that can be used to verify identity, a credit card, and a financial account to
`14 which Amazon can transmit sales proceeds. Products sold by 3P sellers may consist of
`
`15
`
`16
`
`17
`
`(a) products that they acquire elsewhere and resell, in potential competition with other 3P
`
`sellers who engage in the sale ofthe same products; and (b) products that they sell under
`
`a registered “brand,” in connection with a variety of brand—protection programs and
`
`18'
`
`services that Amazon may offer.
`
`19
`
`7.
`
`Amazon restricts the sale of certain categories of products, by requiring 3P
`
`20 sellers to obtain Amazon’s approval before selling these items. Examples of restricted
`21 products include copyrighted multimedia, dietary‘supplements, over—the—counter
`22 medicines, and medical products. 3P sellers that seek to sell products in restricted i
`23 product categories typically provide Amazon with invoices showing that they purchased
`24 these items from a bona fide supplier, in order to establish that the products they intend to
`25
`sell are authentic, and that they are not engaging in retail arbitrage.
`26
`8.
`Amazon requires 3P sellers to agree to selling policies and codes of conduct
`
`27 as a condition to make sales on the Amazon Marketplace. Amazon’s selling policies and
`
`28
`
`codes of conduct prohibit 3P sellers from providing inaccurate information to consumers,
`
`Indictment
`United States v. Rosenberg, et a]. — 6
`
`'
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUTI'E 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`

`

`
`
`
`
`Case 2:20-cr-00151—RAJ Document 1 Filed 09/16/20 ’ Page 7 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 7 of 38
`
`\OOO\]O\U14>~UJI\)I—t
`
`
`
`NNNNNNNNNP-‘l—‘F—‘l—lb-‘l—IP-‘h-‘l—‘F—eooqoxmgmNI—toxoooqoxmhwwwo
`
`manipulating product reviews, otherwise contacting consumers independently of
`
`Amazon, and attacking other 3P sellers and those sellers’ product listings. In practice, a
`
`wide range of 3P seller conduct may violatethese policies and codes of conduct,
`
`including: (a) the sale of unsafe products; (b) the sale of used or refurbished products that
`
`are marketed as “new”; (0) the sale of counterfeit products; ((1) 3P sellers’ infringement of
`intellectual-property rights in product listings, product packaging, and products; and (e)
`3P sellers’ manipulation of product reviews, including by posing falsely as product
`purchasers, and Offering gifts to consumers in exchange for their agreement favorably to
`
`I
`
`post or revise product reviews.
`
`9.
`Amazon also maintains, including on computers and servers located in the
`Western District of Washington, a wide array of information about 3P sellers and their
`
`products, including price and sales history, product-review history, the rate at which
`
`customers return 3P sellers’ products and the reasons that consumers provide for such
`returns, 3P sellers’ timeliness in delivering products to customers and refreshing their
`
`inventory of products that Amazon stores at its warehouses, and identifying information
`regarding customers. 3P sellers have access to some information about their own 3P 1
`l
`
`accounts and products, including product—specific data regarding their revenues over
`time. Amazon does not, however, provide 3P sellers with access to non-public merchant-
`
`specific and/or product-Specific information about other 3P sellers; nor does it provide 3P
`
`, sellers with the contact information for customers who review their products.-
`
`10.
`
`Amazon uses algorithms to control the operation of various aspects of the
`
`Amazon Marketplace, including, in particular, the Amazon Marketplace’s central search
`engine, the prominence of merchants and product reviews in product listings, limits on 3P
`
`sellers’ ability to store different types of inventory in Amazon’s warehouses, and the
`
`potential suspension of 3P accounts or their product listings. For instance, Amazon’s
`
`central search engine may rank product listings in response to customer queries, in part
`
`by reference to “keywords” that 3P sellers use to designate their product listings. The
`
`“buy box” on a product listing may provide consumers with a default seller who has a
`
`Indictment
`United States V. Rosenberg, et a]. - 7
`
`'
`
`.
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 8 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 8 of 38
`
`
`
`\oooq‘oxu‘msswwh.
`
`
`
`NNNNNNNNP—‘l—‘b—‘b—‘D—‘P—‘F—ll—‘Hl—l\IONUI-b-UJNHOKOOOQONU‘I-bwmt—‘O
`
`In addition, the
`long history of positive customer reviews and timely product deliveries.
`most prominent product review shown on a product listing may be one that is recent,
`
`lengthy, and voted “helpful” by other consumers. Amazon takes reasonable measures to
`maintain the confidentiality of information about the algorithms and other systems that
`control the Amazon Marketplace, including by restricting access to this information and
`
`by marking it confidential, and such information derives independent economic value
`
`from its secrecy.
`
`l 1.
`
`Amazon uses “suspensions” to regulate 3P sellers and products on the
`
`Amazon Marketplace. Various teams within Amazon, and the employees and contractors
`
`that compose those teams, have the authority to suspend 3P sellers and products for
`
`reasons that can include product safety, intellectual—property violations, the sale of
`restrictedproducts without first obtaining Amazon’s preapproval throughthe use of a
`
`legitimate supplier invoice, improper contact with consumers, and review manipulation.
`
`Suspensions may be temporary, e. g., in order to provide Amazon time to inspect a
`
`product that consumers have identified as unsafe. Suspensions may also be conditional
`
`upon the relevant 3P seller supplying a “plan of action” to Amazon that adequately
`
`explains the cause of the Conduct that gave rise to the suspension and satisfactory
`
`remedial measures. In certain cases, suspensions may be permanent. Amazon provides
`3P sellers the option to appeal from (or “escalate”) adverse suspension decisions.
`
`12.
`
`Amazon’s computer network includes tools that enables authorized
`
`employees and contractors to suspend 3P sellers and products, receive and review “plans
`
`of action” from suspended 3P sellers, and to revive (or “reinstate”) suspended 3P sellers
`and product listings. Amazon reduires employees and contractors with access privileges
`
`to these tools only to use those privileges in furtherance of their job responsibilities, and
`prohibits them from using those access privileges in furtherance of any private,
`
`pecuniary, objective. Amazon further requires employees and centractors not to provide
`outsiders with access to the tools that they use in connection‘with the regulation of 3P
`
`28
`
`sellers and products on the Amazon Marketplace. AmazOn also provides SOPs, Wikis,
`
`Indictment
`United States v. Rosenberg, et a]. — 8
`
`UNITED STATES ATTORNEY ‘
`700 STEWART STREET) sum: 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 9 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 9 of 38
`
`
`
`and other written guidance, to its employees and contractors in connection with their
`
`regulation of the Amazon Marketplace. Amazon takes reasonable measures to maintain
`
`the confidentiality of these SOPS, Wikis, and other written guidance, including by
`restricting access to this information and by marking it confidential, and Such information
`
`derives independent economic value from its secrecy.
`
`13.
`
`Amazon keeps a record of each 3P seller’s suspension and reinstatement
`
`activity (and other related information about the merchant’s account and product listings)
`
`in a running log of annotations, referred to herein as an “annotation history.” Annotation
`histories may reflect confidentialcomplaints from other 3P sellers and/or customers,
`details of Amazon’s internal investigation regarding the relevant 3P account, a record of
`
`account or product suspensions, and a record of account or product reinstatements.
`
`Amazon does not make annotation histories available to 3P sellers, and otherwise
`restrictsaccess to those annotation histories to the employees and contractors whose roles
`
`and responsibilities include the regulation of the Amazon Marketplace.
`1
`.14.
`The Amazon employees, contractors, and computers that play a role in the
`processes described in this section are located in the Western District of washington and
`elsewhere.
`
`B.
`
`THE DEFENDANTS
`
`15.
`
`EPHRAIM ROSENBERG (“ROSENBERG”), also known as (“aka”) “Ed
`
`Rosenberg,” is a resident of Brooklyn, New York, and the owner of Effyzaz, Inc.
`(“Effyzaz”), a New York company. ROSENBERG purports to provide fee—based
`consulting expertise to 3P sellers, including thrOugh a service named “Amazon Sellers
`
`Group TG” (“ASGTG”). In addition to providing individualized consulting to 3P sellers,
`
`ROSENBERG hosts an annual 3P seller conference in Brooklyn, provides informational
`
`digital videos about 3P sales through an account on the video—sharing website
`www.youtube.com, and hosts interactive 3P consulting webinars.
`
`KOOO\IO\UTJ>UJI\))—t
`
`NNNNNNNNHHHt—‘l—‘b—‘D—KHD—Kr—d
`\IQMgWNHOKDOOQONm-DWNHO
`
`16.
`
`JOSEPH NILSEN (“NILSEN”) is a resident of New York, New York, and
`
`28
`
`is the founder and Chief Executive Officer (“CEO”) of Digital Checkmate, Inc. (“Digital
`
`Indictment
`United States v. Rosenbeig, et a]. — 9
`
`UNITED STATES ATTORNEY
`700 STEWART STREET’ SUITE 5220
`SEATTLE, WASHINGTON 98 101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 10 of 38
`Case 2:20-cr-00151—RAJ Document 1 Filed 09/16/20 Page 10 of 38
`
`Checkmate”), a New York company. NILSEN purports to provide fee—based consulting
`
`expertise to 3P sellers, including by advising 3P sellers regarding their online product
`
`offerings on the Amazon Marketplace, providing competitive intelligence to 3P sellers,
`
`devising marketing campaigns for 3P sellers, and assisting and/or representing 3P sellers
`
`in connection with the suspension of their accounts and product listings. NILSEN also
`.
`has made sales on the Amazon Marketplace through numerous 3P accounts in his name,
`
`the names of others, and dozens of aliases that he uses in order to conceal his identity and
`
`his association with the 3P accounts from Amazon.
`
`l 2 3 4 5
`
`6
`
`7 8
`
`9
`
`l7.
`HADIS NUHANOVIC (“NUHANOVIC”) is a resident of Acworth,
`10 Georgia, and is the owner of Buddibox, LLC (“Buddibox”), a Georgia company.
`
`11 NUHANOVIC operated a 3P account under the name “Buddibox” between in or around
`
`12 October 2013 and in or around August 2018, when Amazon suspended the account for
`
`13
`
`fraud. Since August 2018, NUHANOVIC has continued to operate 3P accounts under
`
`14 various aliases that he uses in order to conceal his identity and his association with the 3P
`
`15
`
`accounts from Amazon. NUHANOVIC also offers fee-based consulting services to other
`
`16
`
`3P sellers.
`
`17
`
`18
`
`18.
`
`KRISTEN LECCESE (“LECCESE”) is a resident of New York, New York,
`
`.
`
`and marketed herself as the Vice President ofDigital Checkmate. In conjunction with
`
`19 NILSEN, NUHANOVIC, and others, LECCESE assisted in providing consulting services
`
`20‘ and also has operated numerous 3P accounts on the Amazon Marketplace.
`21
`19.
`ROHIT KADIMISETTY (“KADIMISETTY”) is a resident ofNorthridge,
`22 California. Between in or around September 2014 and in or around December 2015,
`
`23 KADIMISETTY worked as an Amazon Seller Support Associate in Hyderabad, India.
`
`24 Since in or about January 2017, KADIMISETTY has lived in California and provided
`
`25
`
`26
`
`consulting services for 3P sellers.
`
`,
`
`20.
`
`NISHAD KUNJU (“KUNJU”), aka “Tina” and “Jonathan Li,” is a resident
`
`27 of Hyderabad, India. Until his termination in or around August 2018, KUNJU worked as
`
`28
`
`an Amazon Seller Support Associate in Hyderabad, India. In this position, before his ‘
`
`Indictment
`United States v. Rosenberg, et a]. — 10 i
`
`UNITED STATES ATTORNEY
`700 STEWART STREET> SUHE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 11 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 11 of 38
`
`\Dooflmm-hUJNb—I
`
`NNNNNNNNND—‘r—‘i—‘H‘Hl—‘Hl—‘l—‘HmflmmgwwHOKDOOflmm-PWNt—‘O
`
`termination in or about August 2018, KUNJU helped manage the operation of the
`Amazon Marketplace, and was granted restricted access to tools and files on the Amazon
`
`network relevant to his roles and responsibilities. Such access privileges enabled him to
`
`review and download internal Amazon SOPS and Wikis, review and download data
`
`regarding 3P sellers and products, enforce suspensions against 3P. sellers and products,
`
`and reverse certain enforcement actions. After his August 2018 termination, KUNJU
`
`performed fee—based consulting for 3P sellers, including through NILSEN,
`
`NUHANOVIC, and others known and unknown to the Grand Jury.
`
`COUNT 1
`
`(Conspiracy)
`
`21 .
`
`The allegations contained in Paragraphs 1 through 20 of this Indictment are
`
`re-alleged and incorporated as if fully set forth herein.
`
`A.
`
`THE OFFENSE
`
`22.
`
`Beginning at a date unknown, but no later than July 2017, and continuing
`
`through September 2020, at Seattle, within the Western District of Washington, and
`
`elsewhere, the defendants, EPHRAIM ROSENBERG, JOSEPH NILSEN, HADIS V
`
`NUHANOVIC, KRISTEN LECCESE, ROHIT KADIMISETTY, and NISHAD KUNJU, ‘
`and others known and unknown to the Grand Jury, did knowingly and intentionally
`
`combine, conspire, confederate, and agree together to commit offenses against the United
`States, to wit:
`l
`
`a.
`
`to use a facility in interstate and foreign commerce, namely, the
`
`wires, with the intent to promote, manage, establish, carry on and facilitate the
`
`promotion, management, establishment, and carrying on of an unlawful activity, that is,
`Commercial Bribery, in violation ofNew York Penal Code Section 180.03, and California
`Penal Code § 641.3, in Violation of Title 18, United States Code, Section 1952(a)(3)(A);
`
`and,
`
`b.
`
`to intentionally access a computer without authorization, and exceed
`
`authorized access to a computer, and aid and abet the same, and thereby obtain
`
`Indictment
`United States v. Rosenberg, et a]. - 11
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553-7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 12 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 12 of 38
`
`
`
`\DOO\lO\m4>UJNt—*
`
`NNNNNNNNNQHHH'H'HHHHHooqoxmbwwhtoxoooqombwmao
`
`information from a protected computer, for purposes of commercial advantage or private
`financial gain, and to obtain information with a value that exceeds $5,000, in Violation of
`Title 18, United States Code, Sections 103 0(a)(2)(C) and (c)(2)(B)(i) and (iii).
`
`B.
`
`OBJECTS OF THE CONSPIRACY
`
`'
`
`23.
`It was an objective of the conspiracy to provide 3P sellers with an
`illegitimate competitive advantage on the Amazon Marketplace, and to benefit those 3P
`
`sellers’ financially, by gaining unauthorized access to the systems, processes, and
`
`information that regulate the Amazon Marketplace, and using that access baselessly and
`
`fraudulently to benefit certain 3P accounts and product listings and to harm other 3P
`
`accounts and product listings.
`24.
`It was an objective of the conspiracy to enhance the marketability and
`
`financial success of consulting operations to 3P sellers that relied on recruiting Amazon
`insiders, providing bribes and promises of bribes to those insiders, and obtaining benefits
`
`from those insiders in exchange for bribes and the promise of bribes.
`
`It was an objective of the conspiracy to conceal, protect, and perpetuate the
`25.
`commercial success of 3P sellers and consultants who relied on commercial bribery and
`
`unauthorized access to Amazon’s protected computer network,
`C. MANNER AND' MEANS OF THE CONSPIRACY
`
`26.
`
`The manner and means used to accomplish the conspiracy included the
`
`following:
`
`It was part of the conspiracy that the Defendants, and others known
`a.
`and unknown to the Grand Jury, collaborated to provide fee—based consulting services to
`
`3P sellers.
`
`’
`
`b.
`
`It was part of the conSpiracy that the Defendants, and others known
`
`and unknown to the Grand Jury, recruited Amazon employees and contractors to accept
`
`bribes. It was further part of the conspiracy that such recruitment relied on information
`that other Amazon insiders misappropriated from Amazon’s protected computer network
`regarding employees’ and contractors’ identities, roles, and contact information. It was
`
`Indictment
`United States v. Rosenberg, et a]. - 12
`
`’
`
`UNITED STATES ATTORNEY
`700 STEWART STREET, SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 13 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 13 of 38
`
`\OOOQOUWAUJNt—‘t
`
`NNNNNNNNNH-l—‘P—‘t—‘D—‘l—‘l—‘t—Jl—dl—t
`
`further part of the conspiracy that such recruitment targeted employees and contractors
`with roles, responsibilities, knowledge, and access privileges that would be commercially
`
`valuable to the consultants and the consultants’ 3P clients, including access to computer
`
`systems, tools, processes, and information on Amazon’s protected computer network that
`
`could help secure an unfair competitive advantage over other 3P sellers.
`
`0.
`
`It was part of the conspiracy that, in exchange for bribes and the
`
`promise of bribes, Amazon insiders provided the Defendants, and others known and
`unknown to the Grand Jury, with unauthorized access to Amazon‘protected computers
`and Amazon files, systems, servers, and computer networks, all of which were used in
`
`and affecting interstate or foreign commerce or communication.
`
`d.
`
`It was part of the conspiracy that defendants employed a variety of
`
`methods designed to conceal their communications, identity, and participation in the
`
`scheme. Such techniques included, but were not limited to, (i) using encrypted
`messaging platforms, such as WhatsApp, WeChat, Signal, and Telegram; (ii) creating
`
`email and other accounts, using aliases, for limited use between compartmentalized
`
`participants in the scheme; (iii) using shared cloud—based documents and file storage
`
`services; and (iv) communicating through draft and unsent email messages to avoid the
`
`transmission of emails that could be traced by law-enforcement agents.
`
`e.
`
`It was part of the conspiracy that, without Amazon’s knowledge or
`
`consent, the Defendants, and others known and unknown to the Grand Jury, paid, and
`offered to pay, bribes to Amazon employees for the purpose of influencing their conduct
`in relation to their employment, specifically, in order to benefit 3P accounts operated by
`the members of the conspiracy and their clients, and to cause harm to Amazon.
`
`f.
`It was part of the conspiracy that the Defendants, and others known ‘
`and unknown to the Grand Jury, transmitted, routed, and received bribes using various
`
`means, including but not limited to bulk cash transfers, personal and cashier’s checks,
`
`standard bank wires, payment processing services like Payoneer, and online remittance
`
`and transfer serVices, such as PayPal, Remitly, Xoom, Transfast, and MoneyGram.
`
`Indictment
`United States v. Rosenberg, ef 0]. ~ 13
`/
`
`UNITED STATES ATTORNEY
`700 STEWART STREET’ SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-Cr-00151-RAJ Document 1 Filed 09/16/20 Page 14 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 14 of 38
`
`
`
`g.
`
`It was part of the conspiracy that the Defendants, and others known
`
`and unknown to the Grand Jury, used aliases, apparently unrelated intermediaries, and
`
`false and fraudulent identifiers and information in order to conceal the transmission,
`
`routing, and receipt of bribes. Such concealment included, but was not limited to,
`
`ROSENBERG’S use of a PayPal account registered under the name “Tom Landry,”
`
`NUHANOVIC’S use of a PayPal account under the name “Vinara,” registered under his
`
`wife’s name, and the Amazon insiders” use of Remitly, MoneyGram, and bank accounts
`registered under the names of their associates and family members.
`
`h.
`
`It was part of the conspiracy that, in exchange for bribes and the
`
`promise of bribes, Amazon insiders provided the Defendants, and others known and
`
`unknown to the Grand Jury, with access devices, including the insiders” credentials and
`
`network access privileges, which could be and were indeed used to gain unauthorized
`
`access to Amazon protected computers.
`
`i.
`
`It part of the conspiracy that the Defendants marketed to 3P sellers
`
`and other consultants their access to Amazon insiders.
`
`j.
`
`It was part of the conspiracy that the Defendants referred 3P sellers
`
`to each other, to other consultants, to other 3P sellers, and to Amazon insiders, such that
`
`the Defendants were mutually interdependent upon each other for continued commercial
`
`success.
`
`k.
`
`It was part of the conspiracy that, in exchange for bribes and the ‘
`
`promise of bribes, Amazon insiders provided consultants and 3P sellers, including the
`Defendants, with confidential information taken from Amazon’s protected computers.
`
`The information obtained through these acts of misappropriation included, but was not
`
`limited to:
`
`i.
`
`SOPs, Wikis, and information regarding Amazon’s internal
`
`algorithms, systems, and teams;
`
`ii.
`
`client 3P account information, including annotations,
`
`\OOOQQLA-DUJNH
`
`
`
`NN[\DNN[\D{910[\J)—t»--\v—tH)—‘r—t>—t>-AH)--‘
`WQOM-RWNHOKOOOQONUI-BWNHO
`
`performance reports, and pending enforcement actions;
`
`Indictment
`United States v. Rosenberg, et a]. — 14
`
`UNITED STATES ATTORNEY
`700 STEWART STREET’ SUITE 5220
`SEATTLE, WASHINGTON 98101
`(206) 553—7970
`
`

`

`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 15 of 38
`Case 2:20-cr-00151-RAJ Document 1 Filed 09/16/20 Page 15 of 38
`
`
`
`\OOOQQU‘I-DUJNH
`ONLh-PUJNHO'KOOOQO‘xm-bwwt—AO
`
`27
`
`28
`
`iii.
`
`competitor 3P account information, including the identity and
`
`personal identifiers of account owners and operators, performance data, and disCiplinary
`
`history;
`
`iv.
`
`customer information, inc