After long wire fraud, counterfeit cellphone case, Idaho family members are sentenced

Five members of an extended Treasure Valley family were sentenced to prison last week, nearly five years after being indicted for running a business that sold counterfeit cellphones and accessories, the United States Attorney’s Office for the District of Idaho announced Monday evening.

The five family members — Pavel Babichenko, Piotr Babichenko, Timofey Babichenko, David Bibikov, and Mikhail Iyerusalimets — were found guilty of a range of crimes, including conspiracy to commit wire fraud and conspiracy to traffic in counterfeit goods, in August 2022.

Two other defendants, Kristina Babichenko and Anna Iyerusalimets, were acquitted on all counts.

Senior U.S. District Judge B. Lynn Winmill sentenced the five people found guilty to forfeit a combined $51.9 million, and three of them must spend multiple years in prison.

The five individuals were part of a group that would purchase counterfeit Apple and Samsung phones in Hong Kong and China, smuggle them into the U.S. and then sell them on Amazon and eBay, according to previous Idaho Statesman reporting.

The devices were repackaged in the Treasure Valley and advertised to consumers as genuine and new. In more than a decade of operation, the family sold about $41 million worth of counterfeit devices, according to court records.

“My office is committed to protecting Idaho consumers, businesses, and the public from fraud of all types,” U.S. Attorney Josh Hurwit said in a news release. “The convictions, sentences, and financial recovery, in this case, reflects our ability to work with our law enforcement partners to take down large-scale and long-term international fraud enterprises.”

Here were the sentences handed down, according to the U.S. Attorney’s Office:

Pavel Babichenko: Six years in federal prison, three years of supervised release and a $21,000 fine. A $33.7 million forfeiture money judgment was also entered.

Piotr Babichenko: Four years in federal prison, three years of supervised release and a $10,000 fine. A $3.3 million forfeiture judgment was entered.

Timofey Babichenko: Four years in federal prison, three years of supervised release and a $10,500 fine. A $9.2 million forfeiture judgment was entered.

David Bibikov: One month in federal prison, nine months of home detention and three years of supervised release. A $4.7 million forfeiture judgment was entered.

Mikhail Iyerusalimets: Two months in federal prison, nine months of home detention and three years of supervised release. A $953,411 forfeiture judgment was entered.

The case began in August 2018 when 10 individuals were indicted. Artur Pupko was also part of the operation and pleaded guilty to several charges under a plea agreement in 2019. Gennady Babichenko had his charges dropped in August 2021 and Natalya Babichenko was found not guilty in September 2021.

A hearing will be held to determine restitution and the repayment of public defender fees.

“These sentencings are the result of law enforcement’s unrelenting work to dismantle transnational criminal organizations,” said acting special agent in charge Cheyvoryea Gibson of the Salt Lake City FBI in a news release.