U.S. charges nine in hacking, insider trading scheme

[inanna]

Source: Reuters

Tue Aug 11, 2015 11:00am EDT

U.S. prosecutors have charged nine people over their alleged roles in a hacking scheme to obtain corporate press releases before they were made public, which they said generated more than $30 million of illegal trading profit.

Prosecutors in Brooklyn, New York made public an insider trading indictment charging four traders: Vitaly Korchevsky, a former hedge fund manager from Glen Mills, Pennsylvania; Vladislav Khalupsky, of Brooklyn and Odessa, Ukraine and Leonid Momotok, of and Alexander Garkusha of Georgia.

<snip>

Authorities said that starting around February 2010, hackers infiltrated the networks of press release distributors Business Wire, MarketWired and PR Newswire, and gained access to corporate news such as financial results before it became public.

According to the indictments, the news was then passed to traders who made illegal trades in stocks and options based on the stolen information, with foreign shell companies being used to share the rewards.



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

[Vincardog]

1. SHOCKED I am shocked that there is any anything (still) illegal in reguard to Wall Street.

[erronis]

2. Small fry. I think all the major trading firms are now engaging in early trading.

Based on inside knowledge. Let alone on the dark money pools/markets.

I don't know why there are any outside investors anymore. All individuals and groups representing individuals (pension funds, etc.) should find a more transparent and fairer market.

Having the SEC, NASDAQ, NYSE, rating agencies, etc. all part of the schemes to defraud is insane. Having them police themselves is beyond insane. Having the government agencies unwilling or underfunded to enforce is evidence of collusion at the highest (and lowest) levels.

I won't say anything about any of the fine candidates we have running for President and their ties with big money.

[mpcamb]

7. Still, soak 'em. Leave them penniless.

[wilsonbooks]

3. They were trying to steal a slice of the big boys

money before the big boys could use the info to game the market. Small time graft will not be tolerated by the big time fraudsters.

[Vincardog]

4. BINGO

[90-percent]

5. Yes

They violated the Madoff Rule - they stole from rich investors.

-90% jimmy

[TeamPooka]

6. I project a fine of about $3-$6 million. nt