DOJ Arrests Phantom Secure CEO for Alleged Collusion with Drug Traffickers

Phantom Secure, a Canada-based firm that helped Samsung and BlackBerry enhance the gadgets’ security, have been indicted for allegedly cooperating with drug cartels, which wanted to evade the law enforcement and sell narcotics.

Phantom Secure's CEO, along with four other associates, were indicted for allegedly conspiring with narcotic syndicates.

The firm sold Samsung and BlackBerry devices after they modified them with higher encryption and security functions. This in turn made it difficult for authorities to track and capture drug peddlers and traffickers.

Vincent Ramos, who is the chief executive officer of the company, and four other associates were faced with the Department of Justice’s accusations of “knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.”

Meanwhile, Samsung and BlackBerry have not been implicated with any law violations.

“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said US Attorney Adam Braverman in a press release.

Braverman also stated that the network for communication provided by Phanton Secure will be disabled.

On March 7, the authorities took Ramos into custody in Bellingham, Washington. Ramos made his initial appearance in Washington’s Western District. He is set to face charges in San Diego.

The DOJ said that the other associates are fugitives. The associates are Kim Augustus Rodd, Younes Nasri, Michael Gamboa, and Christopher Poquiz.

The DOJ also stated that the firm ensured that evidence contained within a device would be destroyed if the device was compromised, whether because of an informant or because the law enforcement had a hand on it. The justice department also cited court documents.

The indictment accuses Phantom Secure of generating near $80 million in annual revenues since 2008 by facilitating “drug trafficking, obstruction of justice, and violent crime around the world.”

Among the forces that were involved in the arrest of Ramos were the US, Australia, Canada, Hong Kong, and Thailand. 

During the last couple of weeks, the police force from Australia and Canada cooperated with the US authorities and carried out 25 instances of house searches. They also conducted searches in the offices of Phantom Secure in different locations around the world.

The police took possessions of servers, computers, cellphones, and other items that include drugs and weapons. More than 150 domains and licenses used as part of the encrypted network were gathered together with bank accounts.

Court documents showed that there were as many as 20,000 Phantom Secure devices in use around the globe.

However, the Department of Justice stated that the charges and allegations in the indictment or complaint were simply accusations. This means that the defendants will be considered innocent until they are proven guilty. 

This was the first time that the US government has targeted a firm on such charges.

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