[arin-ppml] Fwd: [ARIN-20140107-F1419] Fraud Report on CloudRadium LLC

xiaofan yang nikiyangxf at gmail.com
Thu Oct 9 23:13:08 EDT 2014


Hello the Community,

As the Baltimore meeting is under way, i would like to report one fraud
case which has never been resolved by ARIN and i think  ARIN just does not
admit such a fraud exist (in case of embarrassment of itself if the
evidences to be exposed into the public). However, I am thinking  it will
be my duty as a member to expose such a fraud case in PPML to (assist
 policy discussion) fix the loop hole in some policy under the discussion.



---------- Forwarded message ----------
From: xiaofan yang <nikiyangxf at gmail.com>
Date: Thu, Jan 9, 2014 at 9:22 AM
Subject: Re: [ARIN-20140107-F1419] Fraud Report on CloudRadium LLC
To: hostmaster at arin.net
Cc: John Curran <jcurran at arin.net>


Fraud Report on one of your current member


Some basic info about the company who has deceived its IPv4 application.

Name of the Comnapy:  CloudRadium LLC.

Registry address:  1603 Capitol Ave St3 310, Cheyenne, WY.

Owner’s name:  Li Xuan (李轩) & Deng Xiu Ping (邓秀平)


As the IPv4 has been depleted in the AP regions,   some so-called clever
guys from China registered a LLC  named CloudRadium LLC in WY in
2012-10-01, meanwhile they registered a domain named
http://www.cloudradium.com  on 2012-09-26.   From then, they’v started
their journey of deceiving the Cherish IPv4 resources which should belong
to the Arin Internet Community from ARIN.   They have carefully studied and
researched all Arin’s Policy on IPv4 management and has abused the policy
to apply for  more IPv4 steps by steps by using the fraud information.  See
details  below.


They do not have or own any IDC infrastructure Either in the USA or in
China.  What they do is to rent other IDC racks and resell its so-called
IDC services to end-users, Which can be proved by its  own Chinese Website
and its upstreams who announced their applied IPs after CloudRadium has
paid those upstreams money for doing this.


They are ineligible for receiving any ongoing IPv4 large blocks. However,
they have planned this long time ago and they started from applying for
smaller blocks initially and requesting subsequent IPs for every 3-months
(they were planning to keep request IPv4 blocks for more than 12 months).
One year later after being a member of ARIN, they can request a 12-month
needs of IPv4 and they have kept requesting IPv4 blocks for 12 months or
even more.   As a result, they gradually “steals” quite a lot IPs from
ARIN.  Normally, the larger of their previous allocation, it will be quite
easier for them to have even more or another larger block from ARIN ( this
is kind of abusing ARIN’s policy by their well-designed sophisticated
justification information).


They submitted falsified utilisation or organisation information during the
resource request process.

Detailed explanations plus evidence in the attachment:


1.They have used little of their allocated IPs and they just pay its
upstreams to announce their IPs to make IPs look like being used.

2.Actually, they has fewer customers who used their so-called services and
they fake their customer base by making fake contracts with unexists or
imaginable customers and making up the equipment list and purchase
invoices, which make their business looks like the same as the real one.

3.One of their core business is to help other Chinese company to apply for
Arin IPs by execution a  ARIN IPv4 application Contract ( I have this
contract and can be used as the evidence to show they are not only applying
for Arin IPs for themselves by using fraud info but also help others to
apply for Arin IPs by using the fraud info too.   They will sign this Arin
IPv4 application Contract with those Chinese and produce fake IDC and
bandwidth service contract which is to be provided to ARIN HM for
justifying those Chinese’s initial /20 IPv4 application (For any ongoing
IPv4 request, they will charge more money from those Chinese for doing
this).   XeVPS L.L.C  also registered in WY (23.226.176.0/20) and XIAOZHIYUN
L.L.C registered in CA (23.226.48.0/20) are this kinds of customer of
CloudRadium who help them to apply for ARIN IPv4 by using fraud
information.   Please pay an attention to those newly registered LLC in WY,
Normally, CloudRadium will help its cust to register LLC in WY.

 4.Another strategy or core business is  to “steal” enough IPs from ARIN
and (when the one year restriction of transfer defined by ARIN policy has
expired) transfer those IPv4 back to AP region or China, where the IPv4 has
already been depleted in 2011-04-15   and they are planning to make quite
lots of profits for selling those IPv4 back to Asia Market.



5.In a word, their main purpose is to have as many IPv4 as they can. Their
company is not founded for the purpose of doing business in USA, but for
accumulating IPv4 addresses, all of which can be verified  by the attached
Company Registry Search and shows that  CloudRadium LLC has not paid any
tax and has been inactive administratively Dissolved; which also means it
is illegal for doing any kinds of business (including but without limited
to apply for IPv4 from ARIN; to provide its “so-called” IDC rack Rental
Services etc).


6. Furthermore, CloudRadium was administratively dissolved at 12 Sep, 2013.
Which means 60 days before that, around July they should’ve received a
notice from the secretary of state about the dissolution. A
administratively dissolved company can not carry on any business except
that are necessary to wind up and liquidate the company under MBCA(Model
Business Cooperation Act Chapter14  Section05). Knowing this, CloudRadium
still applied for the 23.224.0.0/15 around Sep 2013. Why do a dissolved
company need any IP resources? It’s not like they can carry on any business
which needs IP resources anymore. I couldn’t help but wonder how did their
application materials justify this? If they were saying that need the /15
for expanding their business, then their application is nothing but a fraud.


I think ARIN must be knowing that CloudRadium is applying for an ongoing
/14 IPv4 now.  Considering its current company status, how can they
continue to apply for subsequent IPv4 from ARIN?  Will ARIN continue to
allocate another /14 to CloudRadium?



All in all,  CloudRadium does not deserve any IPv4 ( including but without
limit to its currently allocated ARIN IPv4  and any ongoing allocation from
ARIN), Considering its company status is inactive administratively
dissolved.  According to the above explanation and the evidence in the
attachment and ARIN Policy,   ARIN has to *reclaim/revoke* all its ARIN’s
IPv4 upon the completion of your internal investigation.


As a respponsible member of the community, I would strongly suggest ARIN to
look into this matter ( Fraudulent behaviour) seriously.





Below is a list of IPv4 ARIN has already allocated to this Fraud called
CloudRadium LLC.


23.224.0.0/15

2013-09-04


172.247.0.0/16

2013-06-06


162.209.128.0/17

2013-04-01


192.151.192.0/18

2013-01-03


192.161.80.0/20

2012-11-01




Address assigned by its upstream.

64.120.67.0/24

2012-10-22


108.62.122.0/24

108.62.123.0/24

108.62.124.0/24

2012-10-23


147.255.49.0/24

2012-10-23



173.208.13.0/24

2012-10-23


172.208.14.0/24

2012-10-23


173.208.24.0/24

2012-10-23


173.208.71.0/24

2012-10-23



Attachment:

1st. "IP地址申请合同"  evidence for above paragraph 3

2nd. :Chat with the owner of CloudRadium" evidence for above paragraph
1,2,3 and      4, Pay attention to the red coloured info. I think you may
have someone who can read Chinese in Arin or you may ask help from trusted
third party to translate those words, which can be used as the evidence
(even ) on the court.

3rd. "CloudRadium LLC" evidence for above paragraph6; you can also search
its company status via link
https://wyobiz.wy.gov/Business/FilingSearch.aspx

4th. Please also see  the complains from one Chinese customer via
http://www.sc315.gov.cn/WenZ_3J_3_3.aspx?id=55971&menuid=78




Regards,
Niki


On Wed, Jan 8, 2014 at 10:57 PM, <hostmaster at arin.net> wrote:

> Hello,
>
> Thanks for your report.  We'll investigate.  Any additional documentation
> you have would be helpful.
>
> If you have any further questions, comments, or concerns please respond to
> this message or contact me directly.
>
> Regards,
>
> Jon Worley
> Senior Resource Analyst
> ARIN Registration Services
> https://www.arin.net/
> hostmaster at arin.net
> 703.227.0660
>
> For an up to date look at ARIN's current IPv4 inventory, please check here:
>
> https://www.arin.net/resources/request/ipv4_depletion.html
>
>
>
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