Feds Bust CEO Allegedly Selling Custom BlackBerry Phones to Sinaloa Drug Cartel

Motherboard: Phantom Secure is one of the most infamous companies in the secure phone industry. Sources and court documents detail that its owner has been arrested for allegedly helping criminal organizations.

For years, a slew of shadowy companies have sold so-called encrypted phones, custom BlackBerry or Android devices that sometimes have the camera and microphone removed and only send secure messages through private networks. Several of those firms allegedly cater primarily for criminal organizations.

Now, the FBI has arrested the owner of one of the most established companies, Phantom Secure, as part of a complex law enforcement operation, according to court records and sources familiar with the matter.

The heavily redacted complaint, written by FBI Special Agent Nicholas Cheviron, alleges that even members of the notorious Sinaloa drug cartel used Phantom’s devices, and that the “upper echelon members” of transnational criminal groups have bought Phantom phones.

A second source also familiar with the secure phone industry told Motherboard that the devices have been sold in Mexico, Cuba, and Venezuela, as well as to the Hells Angels gang. Cheviron estimates that 20,000 Phantom devices are in use worldwide, with around half of those in Australia; bringing in tens of millions of dollars of revenue to Phantom.