Three Arrested in Texas and Charged in Arizona for Counterfeiting and Selling DVDs
Scheme Netted the Group Approximately $3 Million for Pirated Movies and TV Series

TUCSON—An indictment was unsealed today in Tucson charging four naturalized U.S. citizens with a scheme which involved the unauthorized reproduction and distribution of copyrighted DVDs which netted them approximately $3 million dollars. A federal grand jury in Tucson returned a 10-count indictment against Chuen Han Yuen (aka Jason Yuen), 29; Man Yam Yuen, 58; Tsao Ping Ng, 54; and Sin L. Yuen (aka Michelle Yuen), 31, all originally of Hong Kong, charging them with Conspiracy, Mail Fraud, Wire Fraud and Copyright Infringement.

Jason Yuen, Man Yam Yuen and Tsao Ping Ng were arrested without incident today by Special Agents with the Federal Bureau of Investigation’s (FBI) Houston Area Cyber Task Force in Houston, Texas, after an 18-month long investigation by FBI Cyber Special Agents from the Tucson FBI Office. The three arrested made their initial appearance today in federal court in Houston. They were released pending trial. Michelle will receive a summons to appear in court for her initial appearance.

The indictment alleges that the defendants unlawfully reproduced copyrighted works, including the television series “Get Smart” and various Disney movies, and distributed them via the Internet and the U.S. Mail. The indictment also alleges that they then transferred the proceeds gained by the illegal activity using a Pay Pal account to several bank accounts and netted approximately $3 million over the course of the conspiracy between 2005 and 2009.

A conviction for Wire Fraud or Mail Fraud each carries a maximum penalty of 20 years in federal prison, a $250,000 fine, or both. A conviction for Conspiracy or Copyright Infringement each carries a maximum penalty of five years in federal prison, a $250,000 fine, or both. If convicted of the charges, the indictment also contains a forfeiture allegation which would require them to forfeit property in Harris County, Texas, and the proceeds located in various bank accounts that were obtained as a result of the offenses. In determining an actual sentence, the assigned judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation in Tucson with assistance from the Internal Revenue Service, Criminal Investigation Division and the FBI in Houston. The prosecution is being handled by Eric Markovich, Assistant U.S. Attorney, District of Arizona, Tucson.

CASE NUMBER: CR-09-2402-TUC-JMR
RELEASE NUMBER: 2009-359(Yuen et al)