A Vancouver CEO facing racketeering charges in the U.S. over his company’s sale of encrypted devices says he does not condone illegal activity “in any way, shape or form.”
Arrest warrants were issued last week in the U.S. for Sky Global Inc. CEO Jean-Francois Eap and Thomas Herdman, the latter of whom the U.S. Department of Justice describes as a former high-level distributor of Sky Global’s devices.
The two men have been charged with a conspiracy to violate the U.S. federal Racketeer Influenced and Corrupt Organizations Act (RICO).
The U.S. Department of Justice has accused Sky Global of installing encryption software on smartphones, allowing users to contact each other within encrypted networks, which was in turn knowingly used to facilitate criminal operations and evade police surveillance.
“Sky Global’s devices are specifically designed to prevent law enforcement from actively monitoring the communications between members of transnational criminal organizations involved in drug trafficking and money laundering. As part of its services, Sky Global guarantees that messages stored on its devices can and will be remotely deleted by the company if the device is seized by law enforcement or otherwise compromised,” the U.S. Department of Justice said in a release.
But Eap said the company’s technology was not created to stop police from monitoring criminal organizations.
“It exists to prevent anyone from monitoring and spying on the global community. The indictment against me personally in the United States is an example of the police and the government trying to vilify anyone who takes a stance against unwarranted surveillance,” he said in a statement.
“I do not condone illegal activity in any way, shape or form and nor does our company. We stand for protection of privacy and freedom of speech in an era when these rights are under increasing attack. We do not condone illegal or unethical behavior by our partners or customers.”
Eap said he was only made aware of charges via media reports and authorities have not contacted him about the criminal proceedings as of March 14.
“In the coming days, my efforts will be focused on clearing my name of these allegations,” he said.
European Union law enforcement agency Europol revealed last week authorities in Belgium, the Netherlands and France had wiretapped Sky Global’s network, and monitored hundreds of millions of messages exchanged between its users.
The ensuing investigation resulted in arrests, and the seizure of thousands of kilograms of cocaine and methamphetamine, and hundreds of firearms.
American authorities estimate there are 70,000 SkyGlobal devices in use worldwide and the indictment alleges Sky Global has generated hundreds of millions of dollars in profit by facilitating the criminal activity of international criminal organizations.
Sky Global employees are accused of using Bitcoin and other digital currencies to facilitate illegal transactions over the company’s website, while setting up and maintaining shell companies to hide the proceeds generated by selling its encryption services and devices.
None of the allegations have been proven in court.
