Omi in a Hellcat, Prominent YouTuber, Is Charged in $30 million Fraud Scheme

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A flamboyant YouTuber known arsenic Omi successful a Hellcat was charged with illegally selling copyrighted TV shows and movies done an online service, prosecutors said.

Bill Omar Carrasquillo, a YouTuber known arsenic  Omi successful  a Hellcat, denies charges that helium  illegally sold copyrighted movies and TV shows done  his ain  service.
Credit...via YouYube

Sept. 22, 2021, 8:37 p.m. ET

On YouTube, helium was known arsenic Omi successful a Hellcat, a flamboyant concern mogul successful diamond-studded jewelry who commanded a fleet of luxury cars including Lamborghinis and ran his ain covering enactment and restaurant.

But adjacent arsenic helium lounged successful his sprawling suburban location and showed disconnected his rotating postulation of high-end sports cars, helium acknowledged that the national authorities was closing in.

In June, helium posted a video titled, “THE FBI IS BACK!!!,” successful which helium filmed himself wearing a ample diamond-encrusted pendant that bore his marque name, Reloaded. In a doleful mood, helium warned his 790,000 subscribers that the F.B.I. had seized much than 30 of his cars and millions of dollars from his slope relationship and that helium was going to beryllium indicted connected charges that could see wealth laundering.

“I’ve been benignant of been depressed astir it,” helium confessed.

On Wednesday, federal prosecutors said that they had charged Omi, whose existent sanction is Bill Omar Carrasquillo, and 2 of his associates, successful a strategy that progressive illegally selling copyrighted video contented to thousands of subscribers connected Mr. Carrasquillo’s ain online service, which was called, astatine assorted times, Reboot, Gears TV, Reloaded and Gears Reloaded.

The strategy netted Mr. Carrasquillo and his associated much than $30 cardinal from astir March 2016 until astatine slightest November 2019, according to prosecutors. Mr. Carrasquillo, 35, of Swedesboro, N.J., utilized the wealth to bargain houses and dozens of cars, including the ones that helium regularly flaunted connected his YouTube channel, prosecutors said.

Mr. Carrasquillo could look beingness successful situation if helium is convicted of the charges, which see conspiracy, violating the Digital Millennium Copyright Act, reproduction of a protected work, entree instrumentality fraud, making mendacious statements to a slope and wealth laundering.

Digital piracy schemes person proliferated successful caller years, and a 2019 report released by the U.S. Chamber of Commerce estimated that they outgo the American system astatine slightest $29.2 cardinal a year.

In an indictment, prosecutors said, Mr. Carrasquillo and his associates, Jesse Gonzales, 42, of Pico Rivera, Calif., and Michael Barone, 36, of Richmond Hill, N.Y., indispensable forfeit astir $35 cardinal successful assets, including much than 50 cars and motorcycles and dozens of properties successful Philadelphia.

“You can’t conscionable spell and monetize idiosyncratic else’s copyrighted contented with impunity,” Bradley S. Benavides, the acting peculiar cause successful complaint of the F.B.I.’s Philadelphia division, said successful a statement. “That’s the full constituent of securing a copyright.”

Donte Mills, Mr. Carrasquillo’s lawyer, said his lawsuit denied the charges.

“Mr. Carrasquillo tapped into a brand-new, unregulated manufacture and was precise successful,” Mr. Mills said successful a statement. “Most radical are called pioneers erstwhile they bash that; Omar is called a criminal. The authorities assumes my lawsuit was not astute capable to bash this legally due to the fact that of his background. He is and we volition beryllium that.”

Kathryn Roberts, a lawyer for Mr. Barone, said she had conscionable been appointed to the lawsuit and had nary contiguous comment. It was not instantly wide who was representing Mr. Gonzales.

Mr. Carrasquillo has said helium dropped retired of schoolhouse successful the 11th people erstwhile helium was jailed for selling drugs. He started to get his beingness unneurotic successful 2012, helium said successful an interrogation connected YouTube, and sold drugs for the past clip successful 2014.

After a stint selling DVDs, helium said, helium started buying cogwheel connected Amazon and reselling it arsenic good arsenic created an app called Gears TV. He became a millionaire aft a year, helium said, and bought a Camaro and past a Bentley, indulging successful his emotion of cars.

“That’s erstwhile everything started,” helium said. “Life started to alteration existent quick.”

In the YouTube interview, successful precocious 2019, Mr. Carrasquillo described gathering what helium called a morganatic business, adjacent arsenic helium acknowledged that his cablegram instrumentality had been seized by national agents.

“It was a consecutive streaming app,” helium said. “I wasn’t stealing channels. I was paying for my cablegram boxes. I was paying for my cablegram service. And that’s wherefore I’m truthful comfy talking astir it.”

According to the indictment, Mr. Carrasquillo and his associates ran an online work that provided TV shows and movies successful speech for a fee. They besides ran an online room of movies, called STREAMS R US oregon SRIJ, the indictment states.

The men obtained the contented by subscribing to morganatic cablegram and video services from Comcast, Verizon, Charter, DirecTV and Frontier, the indictment states.

They past acceptable up cablegram boxes and different devices to entree the contented successful astatine slightest 7 antithetic homes successful Philadelphia, arsenic good arsenic successful places successful California and New York, the indictment states.

Using encoders imported from China, they stripped integer copyright protections from the video contented connected the devices, which allowed the contented to beryllium transmitted implicit the net and copied to machine servers, the indictment states.

Subscribers could entree the video contented connected websites that the men had acceptable up, the indictment states. The work adjacent included “a subscriber interface, akin to a TV Guide,” that allowed users to browse a database of the programs that were disposable for viewing, the indictment states.

When the men signed up for the morganatic cablegram services from Comcast and different companies, they ne'er disclosed that they “intended to copy, transmit and watercourse the video contented to thousands of their ain subscribers,” the indictment states.

In the video astir his mounting ineligible troubles that helium posted to his YouTube transmission successful June, Mr. Carrasquillo lamented the probe into his endeavor and asked the authorities to “at slightest springiness maine a accidental to wage them what they deliberation I beryllium them.”

“Don’t enactment maine successful a jail,” helium said. “What the hellhole is that going to do? I’m not a menace to society,” helium continued, salting his code with expletives. “Let maine wage disconnected my debts, the millions of dollars that I beryllium you, and I’ll slap it disconnected and past we’ll each spell astir our way.”

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