US charges eight in securities hacking scheme

January 15, 2019
Suspects in Ukraine and Russia were charged in a scheme to hack a US government website to gain early access to sensitive corporate information to beat the market

US authorities on Tuesday charged eight people in a scheme to trade on and profit from stolen corporate information hacked from a government database, court papers showed.

The alleged scheme, which involved suspects in Ukraine, Russia and the United States, pulled in more than $4.1 million ill-gotten gains from trading on securities filings before they became public, according to the Securities and Exchange Commission.

Authorities said the plot was carried out between 2016 and 2017, and was the second phase of a long-running effort that originally targeted news agencies which publish corporate news releases.

By trading on and selling early access to sensitive information from annual and quarterly reports, and other filings, before they were released to the public, the defendants were able to beat the market and make a profit, court papers said.

A in New Jersey filed 16 against Ukrainian national Oleksandr Ieremenko and Ukrainian resident Artem Radchenko, and aims to seize all ill-gotten property tied to the alleged conspiracy.

The SEC also took against Ieremenko, who also was charged in the 2015 scheme, along with six other individuals and two corporate entities.

The SEC's Electronic Data Gathering, Analysis, and Retrieval system, known as EDGAR, is a repository of corporate disclosures meant for investors and includes servers physically located in New Jersey.

Explore further: Two charged with hacking SEC computers in trading scheme

Related Stories

Two charged with hacking SEC computers in trading scheme

January 15, 2019

Two Ukrainian men hacked into the Securities and Exchange Commission's computers to steal thousands of quarterly and annual reports of public companies and worked with traders to use the information to make more than $4 million ...

Fed agency urging corporate cybersecurity upgrades is hacked

September 21, 2017

The federal agency responsible for ensuring that markets function as they should and for protecting investors was hacked last year and the intruders may have used the nonpublic information they obtained to profit illegally.

Recommended for you

Meteorite source in asteroid belt not a single debris field

February 17, 2019

A new study published online in Meteoritics and Planetary Science finds that our most common meteorites, those known as L chondrites, come from at least two different debris fields in the asteroid belt. The belt contains ...

Diagnosing 'art acne' in Georgia O'Keeffe's paintings

February 17, 2019

Even Georgia O'Keeffe noticed the pin-sized blisters bubbling on the surface of her paintings. For decades, conservationists and scholars assumed these tiny protrusions were grains of sand, kicked up from the New Mexico desert ...

Archaeologists discover Incan tomb in Peru

February 16, 2019

Peruvian archaeologists discovered an Incan tomb in the north of the country where an elite member of the pre-Columbian empire was buried, one of the investigators announced Friday.

Where is the universe hiding its missing mass?

February 15, 2019

Astronomers have spent decades looking for something that sounds like it would be hard to miss: about a third of the "normal" matter in the Universe. New results from NASA's Chandra X-ray Observatory may have helped them ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.