Breaking News

Nine People Charged in Insider Trading Related Case
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

hacker

Summary: Criminal charges were brought against four Brooklyn traders and five hackers in Ukraine for stealing not yet released information which traders used to profit off.

A group of hackers in Ukraine and U.S. based stock traders are believed to have made upwards of $100 million off of insider trading over the course of five years. The hackers stole press releases that had not been released yet and gave the information to the traders in return for a percentage of the profits.

  
What
Where


These charges are the first time that U.S. prosecutors have given criminal charges for securities fraud involving hacked information. The hackers in the case stole 150,000 press releases from Business Wire, PR Newswire, and MarketWired.

Traders made a “shopping list” of the releases they were interested in and then the hackers took the press releases from the three distributors before they were released to the public. The hackers in Ukraine then put together a “how to” video, explaining how the traders could view the press releases. They made a portion of the profit from any trades that were made based on the information obtained.

The nine indicted were from Brooklyn, New York and Newark, New Jersey. The U.S. Securities and Exchange Commission (SEC) filed a separate lawsuit charging more people that were involved in what they allege was closer to $100 million in illegal profits. The grand jury case is only accusing them of $30 million in profits.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




U.S. attorney for New Jersey Paul Fishman stated “this case illustrates how cyber criminals and those who commit securities fraud are evolving and becoming more sophisticated.” The distributors were not charged with anything and were very cooperative in the investigation. The companies profited off were Acme Packet Inc, Align Technology Inc, Caterpillar Inc, Dealertrack Technologies Inc, Dendreon Corp, Edwards Lifesciences Corp, and Panera Bread Co.

Source: http://www.reuters.com/article/2015/08/11/us-cybercybersecurity-hacking-stocks-arr-idUSKCN0QG1EY20150811



Photo: nz.news.yahoo.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Corporate, Mergers and Acquisitions and Securities Associate Attorney

USA-NY-New York City

New York City office of our client seeks corporate, mergers and acquisitions and securities associat...

Apply Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Eminent Domain Attorney

USA-TX-Richmond

Richmond office of our client seeks eminent domain attorney with 5+ years of experience. The candida...

Apply Now

RELEVANT JOBS

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Hotline sta...

Apply now

Litigation paralegal

USA-TX-Dallas

We are looking to immediately hire a responsible, highly organized, self-motivated litigation parale...

Apply now

Attorney

USA-TX-Dallas

Associate Attorney – 7 to 10 Years’ Experience - Dallas/Fort Worth   ...

Apply now

Associate Attorney

USA-TX-Dallas

Associate Attorney – 3 to 5 Years’ Experience - Dallas/Fort Worth   ...

Apply now

SEARCH IN ARCHIVE

To Top