Accused VoIP Fraudster Sought As Fugitive

Federal authorities say a Miami man facing computer and wire fraud charges for stealing VoIP services and selling them through his own company has fled, and a warrant has been issued for his arrest.

Edwin Pena, 23, was arrested June 7 for allegedly acting as a legitimate wholesaler of Internet-based phone services while actually running a sophisticated fraud. Federal investigators say he and a conspirator secretly hacked into the computer networks of unsuspecting Voice over IP (VoIP) telephone service providers, including one Newark, NJ.-based company, to route his customers’ calls.

Pena allegedly stole and then sold more than 10 million minutes of service at deeply discounted rates, netting more than $1 million from the scheme.

A little more than a month ago, Pena failed to meet his bail conditions. After his initial arrest, he had been placed under pretrial release supervision. Out on a $100,000 bond, Pena’s travel had been restricted to the Southern District of Florida and the District of New Jersey.

Assistant U.S. Attorney Erez Liebermann called Pena a fugitive. "We have leads we’re investigating," he says. The government had been waiting to find out if Pena would plead out, or if the case would go to trial.

Pena’s girlfriend’s mother put up two of her properties to secure his bail. According to a source close to the case, both the girlfriend and her mother remain in Florida while Pena is on the run.

"If they can commit this anywhere, there’s no reason to stay," says Liebermann. "When you’re online, it’s the same virtual world sitting on the beach in the Grand Cayman Islands as it is behind a desk in Newark."

Robert Moore, Pena’s alleged confederate in the scam, has been charged with conspiracy to commit computer fraud. Moore, a resident of Spokane, Wash., has not fled.