U.S. Department
of Justice
United States v. Vladimir Okhotnikov et al
PENDING CRIMINAL DIVISION CASES
United States v. Vladimir Okhotnikov et al.,
Court Docket No.: 23-cr-57
Court Assigned: This case is assigned to the U.S. District Court for the District of Oregon, U.S. Courthouse, 1000 S.W. Third Ave. Portland, Oregon 97204, before Judge Karin J. Immergut
Latest Updates:
On February 22, 2023, Vladimir Okhotnikov a/k/a “Lado,” Olena Oblamska a/k/a “Lola Ferrari,” Mikhail Sergeev a/k/a “Mike Mooney,” a/k/a “Gleb,” a/k/a “Gleb Million,” and Sergey Maslakov were indicted with one count of conspiracy to commit wire fraud in connection with a $340 million Ponzi and pyramid scheme involving a “DeFi” (decentralized finance) cryptocurrency investment platform called “Forsage.” Between at least January 31, 2020 to mid-2022, the defendants founded and controlled Forsage, which they characterized as a “community” and “decentralized” business system based on network marketing and sophisticated crypto smart contracts, into which investors would invest cryptocurrency.
Criminal Charges:
According to the indictment, the defendants, Vladimir Okhotnikov a/k/a “Lado,” Olena Oblamska a/k/a “Lola Ferrari,” Mikhail Sergeev a/k/a “Mike Mooney,” a/k/a “Gleb,” a/k/a “Gleb Million,” and Sergey Maslakov founded Forsage and touted Forsage as a decentralized matrix project based on network marketing and smart contracts, which the defendants aggressively promoted to the public through social media as a safe and lucrative business opportunity. In truth, the defendants operated Forsage as a textbook Ponzi and pyramid investment scheme that took in approximately $340 million from victim-investors around the world.
As alleged, the defendants coded and deployed smart contracts that systematized their combined Ponzi/pyramid scheme on the Ethereum, Binance Smart Chain, and Tron blockchains. To participate in Forsage’s investment program, a prospective investor was first required to purchase a “slot” in a smart contract developed by Forsage. To purchase a slot, an investor transferred funds—either Ethereum, Tron, or Binance tokens—from his or her own cryptocurrency account to one of Forsage’s smart contracts on the blockchain. Analysis of the computer code underlying Forsage’s smart contracts revealed that, as soon as an investor invested in Forsage, the smart contracts automatically diverted the investor’s funds to other Forsage investors. Blockchain analytics further confirmed that, consistent with a Ponzi scheme, Forsage paid earlier Forsage investors with funds from later Forsage investors. Blockchain analytics further revealed that over 80% of Forsage investors received fewer Eth than they had invested in Forsage’s Ethereum program, and over 50% of investors never received a single payout at all from that program.
According to court documents, at least one of Forsage’s accounts (known as the “xGold” smart contract on the Ethereum blockchain) was coded in a way that fraudulently siphoned investors’ funds out of the Forsage investment network and into cryptocurrency accounts under the Founders’ control, which was contrary to representations made to Forsage investors that “100% of the [Forsage] income goes directly and transparently to the members of the project with zero risk.”
The four defendants are charged with conspiracy to commit wire fraud. If convicted, they face a maximum total penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
For more information about the charges in this case, please see below:
Victim Impact Statement: If you would like to submit a Victim Impact Statement, you may do so by mailing the Victim Impact Statement below (or a letter to the court) to: Victim Witness Unit, U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, Room 4416, Washington, DC 20530. You also may submit the Victim Impact Statement via email at Victimassistance.fraud@usdoj.gov or by fax at: (202) 514-3708.
The information on this website will be updated as new developments arise in the case. If you have any questions, please call the Victim Assistance Line toll-free at (888) 549-3945 or email us at VictimAssistance.fraud@usdoj.gov.
Presumption of Innocence: It is important to keep in mind that a criminal indictment is merely an allegation, and defendants are presumed innocent until proven guilty and that presumption requires both the court and our office to take certain steps to ensure that justice is served.
Crime Victims’ Rights Act and Right to Retain Counsel: Because charges have been filed in this case in federal court, you also may be entitled to the following rights, according to the Crime Victims’ Rights Act, Title 18, United States Code, Section 3771: (1) The right to be reasonably protected from the accused; (2) The right to reasonable, accurate, and timely notice of any public court proceeding, or any parole proceeding, involving the crime or of any release or escape of the accused; (3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding; (4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding; (5) The reasonable right to confer with the attorney for the Government in the case; (6) The right to full and timely restitution as provided in law; (7) The right to proceedings free from unreasonable delay; (8) The right to be treated with fairness and with respect for the victim’s dignity and privacy; (9) The right to be informed in a timely manner of any plea bargain or deferred prosecution agreement; and (10) The right to be informed of the rights under this section and the services described in section 503(c) of the Victims’ Rights and Restitution Act of 1990 (42 U.S.C. § 10607(c)) and provided contact information for the Office of the Victims’ Rights Ombudsman of the Department of Justice. The Crime Victims’ Rights Act (18 U.S.C. § 3771) applies only to victims of the counts charged in federal court, and thus individuals may not be able to exercise all of these rights if the crime of which the individual is a victim was not charged.
Section 3771(c)(2) of this Act requires that we advise you that you have the right to retain counsel. Although the statute specifically sets forth your right to seek advice of an attorney with regard to your rights under the statute, there is no requirement that you retain counsel. The Government may not recommend any specific counsel, nor can the Government (or the Court) pay for counsel to represent you. Government attorneys represent the United States.
If you elect to obtain counsel to represent your interests, please have your attorney notify this office in writing at: U.S. Department of Justice, Criminal Division, Fraud Section, 10th & Constitution Avenue, NW, Bond Building, 4th Floor, Washington, DC 20530, Attention: Victim Witness Unit; fax: (202) 514-3708; or email: victimassistance.fraud@usdoj.gov. If you elect not to retain counsel to represent your interests, you do not need to do anything.
Plea Agreements: Please be aware that many criminal cases are resolved by plea agreement between the Department of Justice and the defendant. You should also know that it is not unusual for a defendant to seek to negotiate a plea agreement shortly before trial is scheduled to begin. Plea agreements can be made at any time and as late as the morning of trial, leaving little or no opportunity to provide notice to you of the date and time of the plea hearing. If the court schedules a plea hearing in this case, we will use our best efforts to notify you of available information as soon as practicable. If you want to inform the prosecutor of your views regarding potential plea agreements, or any other aspect of the case, please contact the prosecutor assigned to this case or call the Victim Assistance Line toll-free at (888) 549-3945 or email us at victimassistance.fraud@usdoj.gov.