Australian man gets 8 years in US for role in multi-million dollar scam

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Australian man gets 8 years in US for role in multi-million dollar scam

Perth man Zhenya Tsvetnenko was sentenced to eight years in a federal US prison for his role in a multi-million dollar text messaging scam.

The Russian-born former rich-lister and regular fixture of the Perth social scene pled guilty in February after a long and protracted legal battle.

He was originally charged in July 2016 and fought the charges before agreeing to extradition to the US in January.

He personally made $15.4 million from the scam, which he has since paid back.

Tsvetnenko, a tech entrepreneur who came to prominence in Perth in the late 2000s, once had a fortune valued at $107 million.

US District Court Judge Analisa Torres sentenced Tsvetnenko this morning Australian time, giving him jail time in the higher range of what US prosecutors had hoped for.

Tsvetnenko's lawyers had been pitching for him to be released under time already served, which is almost four years.

From 2012 to 2013, Tsvetnenko and his co-conspirators defrauded hundreds of thousands of mobile phone consumers in the United States by placing unauthorised charges on their mobile phone bills, according to the US Department of Justice.

Auto-subscribing saw US consumers bill US 9.99 a month for services such as horoscopes, celebrity gossip or trivia facts without their knowledge or consent.

The bills would recur monthly unless consumers told their phone company they wanted out of service.

Tsvetnenko and his co-defendants made a fortune through the scam, according to US Department of Justice attorney Damian Williams.

They laundered the proceeds through shell companies.

Tsvetnenko is paying a steep price for his mobile scam, as he has already paid back $15 million in forfeiture, and will spend 98 months in federal prison, Mr Williams said.

Tsvetnenko's lawyer didn't respond to a request for comment when contacted by the ABC.