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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →The 2019 CyberScoop headline described allegations against Amir Golestan, then CEO of cloud company Micfo. The case later reached a guilty-plea and sentencing outcome: in 2021, Golestan and Micfo pleaded guilty to all 20 wire-fraud counts, and in 2023 Golestan was sentenced to five years in federal prison.
What was the alleged IP address fraud scheme?
According to the U.S. Department of Justice’s account of evidence presented at trial, Golestan created ten fictitious companies called “Channel Partners” to obtain rights to IPv4 addresses from the American Registry for Internet Numbers (ARIN). The companies allegedly used false representations, including fictional websites and employees, to appear legitimate and meet ARIN’s need-based justification for address allocations. DOJ described the scheme in its 2021 account.
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ARIN is a nonprofit that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. IPv4 addresses are numerical labels assigned to devices on networks that use the Internet Protocol. The DOJ said demand rose as ARIN’s IPv4 pool was exhausted, creating a secondary market for address rights.
After Micfo no longer qualified to obtain additional addresses under ARIN policies, the DOJ said Golestan used the Channel Partners to obtain rights and then sold them on the secondary market.
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How did the case progress from charges to a guilty plea?
2019: CyberScoop reported charges
Jeff Stone’s May 17, 2019 CyberScoop article reported the accusations as charges, not a conviction. It said the scheme involved more than 750,000 IP addresses and estimated their value at $13 to $19 per address. CyberScoop also reported that many of the addresses later appeared on a Spamhaus blocklist. Those were figures and details in the contemporaneous 2019 report, not the later court outcome. Read the CyberScoop report.
2021: Golestan and Micfo pleaded guilty
On November 18, 2021, the U.S. Attorney’s Office for the District of South Carolina announced that Golestan and Micfo pleaded guilty to all 20 wire-fraud counts without a plea agreement. The pleas came mid-trial, after two days of proceedings and testimony from eight government witnesses. The DOJ announcement said Golestan had pocketed approximately $3.5 million, with another $6.2 million in escrow.
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2023: Golestan was sentenced
On September 20, 2023, the same U.S. Attorney’s Office announced that Golestan was sentenced to 60 months in federal prison, followed by two years of court-ordered supervision. The judge also ordered him to pay ARIN $76,978.25 in restitution. The announcement notes that federal sentences do not include parole. Read the DOJ sentencing announcement.
How should the different dollar figures be understood?
The figures refer to different things reported at different stages, so they should not be treated as interchangeable valuations of the same measure.
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| Figure | What it describes | Source and context |
|---|---|---|
| More than 750,000 addresses; $13–$19 per address | CyberScoop’s contemporaneous 2019 reporting on the charged scheme and estimated address value | CyberScoop, May 17, 2019 |
| Approximately $3.5 million; another $6.2 million in escrow | Money pocketed and held in escrow, as described in the DOJ’s 2021 case account | DOJ, November 18, 2021 |
| $76,978.25 | Restitution ordered to ARIN at sentencing | DOJ, September 20, 2023 |
The 2019 headline’s “million-dollar” framing predates the guilty pleas and sentence. The later DOJ account refers to proceeds and escrow, while the sentence announcement gives the restitution amount; these are distinct case figures.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to the Micfo CEO?
Golestan pleaded guilty with Micfo to all 20 wire-fraud counts in 2021. In 2023, he received a five-year federal prison sentence and two years of supervision, with restitution ordered to ARIN. The cited sentencing announcement establishes the sentence; it does not establish his later custody status or whether the restitution has been paid.
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