Once high-flying tech tycoon extradited from Perth to US to ‘answer the call of American justice’

A former Perth playboy has been flown to the US to ‘answer the call of American justice’.

Russian-born tech tycoon Eugeni “Zhenya” Tsvetnenko has been flown from Perth to the US to face authorities over his alleged role in a lucrative text message scam, five months after giving up his extradition fight.

Australian Federal Police handed the 41-year-old former playboy over to the US Marshals Service at Perth International Airport on Thursday before they boarded the flight.

Damian Williams, the US Attorney for the Southern District of New York, issued a statement after Mr Tsvetnenko touched down on Friday, saying he would “answer the call of American justice”.

“Eugeni Tsvetnenko is alleged to have surreptitiously subscribed hundreds of thousands of cell phone users to a $9.99 per-month charge for recurring text messages they did not approve or want,” Mr Williams said.

“As a result of their auto-subscribing scheme, Tsvetnenko and his co-conspirators are alleged to have silently drained over $41 million in illegal proceeds from their unknowing victims.”

When Eugeni Tsvetnenko debuted on the BRW Young Rich List in 2009, he was estimated to be worth $107m. Pictured with his now estranged wife Lydia. Picture: Karin Calvert-Borshoff

IRS-CI special agent in charge Joleen D. Simpson said the extradition was clear proof that Mr Tsvetnenko’s “vast fortune and residence on another continent did little to shield him from answering the charges”.

FBI assistant director-in-charge Michael J. Driscoll said the victims, in many cases, disregarded the texts as spam until the charges turned up on their monthly statements.

“Ultimately, as we allege, the defendants were able to steal more than $40 million and realize more than $20 million in profits,” he said.

“Today’s case is a reminder for all of us to maintain awareness of the charges we incur on our financial statements.

“No matter how insignificant a fraudulent charge may seem, the bigger picture often tells a different story.”

He had rapper Snoop Dogg as a guest at his 29th birthday bash.

The father of two was charged with wire fraud, identity theft and money laundering-related offences in mid-2016 but wasn’t arrested until December 2018.

He had been detained at Hakea Prison, having lost three bids to secure bail after being deemed a flight risk.

He was due to face a four-day extradition hearing in Perth Magistrates Court in August but instead gave his consent to surrender to US authorities in a shock move.

US authorities claim Mr Tsvetnenko and his alleged co-conspirators – including former Mobile Messenger executives Darcy Wedd and Fraser Thompson - transferred the millions they reaped in 2012 and 2013 through the bank accounts of a series of shell companies and companies held in the names of third parties to conceal the sources.

They say Mobile Messenger’s aggregation platform furnished lists of phone numbers to Mr Tsvetnenko along with an auto-subscribing “playbook,” which provided him with tips on how to auto-subscribe without being caught.

Mr Tsvetnenko co-owned the Voyeur Bar in Subiaco with AdultShop.com founder Malcolm Day.

“The ‘playbook’ described how to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text-messaging services, when in truth they had not,” Mr Williams’ office said.

Wedd and Thompson were respectively sentenced to 10 years and five years in jail for their role in the scam.

Most of Mr Tsvetnenko’s charges carry a maximum penalty of 20 years in prison.

The multi-millionaire was a prominent figure in Perth’s high-flying social scene, holding extravagant parties and appearing at red carpet events.

He and his now estranged wife Lydia co-founded fashion label Zhivago, arrived in a horse-drawn carriage for their manor house wedding and had rapper Snoop Dogg as a guest at Mr Tsvetnenko’s 29th birthday bash.

The Bitcoin multi-millionaire featured regularly in Perth’s social pages in his heyday.

Mr Tsvetnenko co-owned the Voyeur Bar in Subiaco with AdultShop.com founder Malcolm Day, but the venue closed after being targeted in arson attacks in late 2018.

There is no suggestion Mr Day was involved in Mobile Messenger.

He was a BRW Young Rich lister, Ernst and Young Entrepreneur of the Year Award winner and also scooped a Business News “40 Under 40” award.

Mr Tsvetnenko in 2013 co-founded a Bitcoin “mining” company – the world’s first publicly-listed digital currency firm – which is now known as DigitalX.