According to a 62-count indictment issued by a US Federal Court following his arrest in September 2021, Bill Omar Carrasquillo, also known as Omi in a Hellcat – and two named co-defendants – made more than $30 million from a fraudulent subscription service that illegally distributed pay TV programming from early 2016 through at least late 2019. Carrasquillo pleaded guilty to the charges in February 2022.
Indictments against them identified Comcast, Verizon FiOS, Frontier Communications, DirecTV and Charter Communications as the sources of the copyrighted programming. The stolen programming was sold to consumers for as little as $15 per month.
Irdeto conducted the original investigation into this matter on behalf of Charter Communications (Spectrum). Also involved in the investigation were the FBI and the US Internal Revenue Service. Prosecution has been by officials of the US Attorney’s Office and the Computer Crime and Intellectual Property Section of the US Department of Justice.
Charges detailed
On March 8, 2023, the sentencing of Carrasquillo was announced. A news release by the US District Court of the Eastern District of Pennsylvania summarized the charges
- Carrasquilllo had been charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; six counts of wire fraud; three counts of making false statements to a bank; 19 counts of money laundering; two counts of making false statements to law enforcement officers; two counts of removal of property to prevent seizure; and four counts of tax evasion. In total, if convicted of all counts, Carrasquillo faces up to 514 years’ imprisonment.
- Co-defendant Michael Barone was sentenced to 28 months imprisonment on March 9. He was charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; two counts of access device fraud; and five counts of wire fraud. In total, if convicted of all counts, Barone would face up to 130 years’ imprisonment.
- The third co-defendant, Jesse Gonzales, was charged with one count of conspiracy to commit copyright infringement and related offenses; one count of violating the Digital Millennium Copyright Act; one count of reproduction of a protected work; 19 counts of public performance of a protected work; four counts of access device fraud; five counts of wire fraud; two counts of making false statements to a bank; and one count of money laundering. In total, if convicted of all counts, Gonzales faces up to 244 years’ imprisonment.
Separate from these charges and activities, Carrasquillo had also been charged with copyright infringement for the use of the name ‘Reloaded,’ for one of their illegal IPTV services.
Carrasquillo conviction and sentencing
Carrasquillo was convicted of one count of conspiracy; one count of violating the Digital Millennium Copyright Act; 1 count of reproduction of a protected work; 3 counts of public performance of a protected work; 1 count of access device fraud; 1 count of wire fraud; 1 count of making false statements to a bank; 1 count of money laundering; 1 count of making false statements to law enforcement officers; and 1 count of tax evasion.
In addition to a sentence of 66 months’ imprisonment, the court ordered Carrasquillo to pay $10.7 million in restitution to the victim cable companies, more than $5 million in restitution to the IRS, and to forfeit over $30 million in illegal proceeds that he reaped from the scheme.
Further details
Leader of Illegal Copyright Infringement Scheme Sentenced to 5 1/2 Years’ Imprisonment. News release. March 8, 2023. US Attorney’s Office for the Eastern District of Pennsylvania
Local YouTube star sentenced to 5 1/2 years, ordered to forfeit $30M in large-scale cable piracy case. Article. March 7, 2023. The Philadelphia Enquirer
ACE applauds Justice Department on sentencing of Gears TV piracy site operators. News release. March 9 2023. Alliance for Creativity and Entertainment
Why it matters
Quoting from the US Attorney’s Office news release, “Income gained from the infringement of copyrights is taken seriously, and the federal government will continue its commitment to protecting copyright holders, creators, and the millions of customers who enjoy the fruits of a strong intellectual property rights system,” said U.S. Attorney Jacqueline C. Romero.
“Carrasquillo and his co-defendants operated a large-scale cable piracy scheme. They fraudulently obtained cable television accounts and then resold copyrighted content to tens of thousands of subscribers across the country and abroad, earning over 30 million dollars in illicit revenue in about three years, none of which was reported on state or federal income tax return. Accordingly, today’s sentencing of Omar Carrasquillo includes prison time and substantial forfeiture and restitution reflecting the severity of his actions,” said Romero.
“Making money off of someone else’s copyrighted work is theft, plain and simple,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Mr. Carrasquillo hijacked all of this content, sold it to his subscribers, and lived large off the illegal proceeds. Today’s sentence should send a message that willfully stealing another party’s intellectual property is a serious crime and the FBI is committed to holding violators accountable.”
