Posted August 12, 2015 7:17 PM ET; Last updated August 14, 2015 3:42 PM ET
[From article]
The Pennsylvania pastor arrested on Tuesday for pocketing profits of $17.5 million using illegal inside information won’t be tending his flock this Sunday — because he’s in jail.
A rare legal smackdown between federal judges resulted late Tuesday night with the freezing of the bail order freeing the pastor, Vitaly Korchevsky, head of the Slavic Evangelical Baptist Church in Brookhaven, Pa.
A Brooklyn federal court judge overturned a Philaelphia magistrate judge’s order that would have freed the pastor on a $100,000 bond.
http://nypost.com/2015/08/13/pastor-saved-souls-by-day-stole-millions-at-night-feds/
Pastor saved souls by day, stole millions at night: feds
By Michelle Celarier
New York Post
August 13, 2015 | 12:25am
* * *
[From article]
An international hacking ring armed with tens of thousands of corporate secrets pocketed more than $100 million from illicit trades, targeting a core vulnerability of the financial system in one of the digital age's most sprawling insider-trading schemes, federal investigators said Tuesday.
Since 2010, more than 30 hackers and traders across the U.S., Ukraine, Russia and other countries coordinated to steal and profit from more than 150,000 press releases, which were scheduled to be delivered to investors from corporate wire services Business Wire, PR Newswire and Marketwired.
[. . .]
Unlike the recent high-profile hacks of health insurers and government agencies, the sophisticated hacks targeted not just people's identities, but corporate intelligence, and some hackers and traders were even aided by former broker-dealers registered with the Securities and Exchange Commission.
By breaking into the wire services, some of Wall Street's most vital and unnoticed information hubs, investigators said the hackers and traders were able to defraud investors on a massive scale while leaving no public trace, a worrying development for the increasingly intricate networks that keep the financial world online.
[. . .]
“The traders were market-savvy, using equities and options … to maximize their profits.”
The years-long subterfuge highlights the hidden danger of modern finance and the broader Web, in which any one compromised link in the larger chain can quietly endanger the system for years. The hackers, experts said, didn't have to breach many individual companies or vacuum up a large amount of files to succeed. Instead, they hit data-rich clearinghouses knowing exactly what they wanted, ensuring an efficient attack.
[. . .]
Federal agents on Tuesday began arresting suspects Tuesday, with nine facing criminal charges for their role in grabbing $30 million in profits.
Authorities said they have also seized a house boat, an apartment complex, a shopping center and a dozen other properties, as well as more than a dozen brokerage accounts holding $6.5 million.
[. . .]
The ability to see a stock's near-future generated windfalls at warp speed; in one instance, traders made half a million dollars in 36 minutes. In a 2013 scheme, the traders bought more than $8 million in shares of Align Technology after stolen documents showed that the medical-device maker's revenues had recently soared. One day later, when the news went public, the traders cashed out for a profit of more than $1.4 million.
[. . .]
The hackers tapped an armament of brute-force, injection and "spear-phishing" attacks, bulldozing through security systems, implanting malicious code or persuading employees to click on booby-trapped links.
[. . .]
The traders were helped by four co-conspirators in Alpharetta and Suwanee, Georgia; Glenn Mills, Pennsylvania; and Brooklyn, two of whom were formerly broker-dealers registered with the SEC.
[. . .]
In 2013, investigators said, the team explored even newer ways of defrauding trades, including tricking sellers by rapidly buying and cancelling trades, which one called a "special daytrading strategy."
[. . .]
another hacker group, called FIN4, had targeted the computer networks of more than 100 health care, law and pharmaceutical firms, hoping to grab insider intelligence on "impending market catalysts" that could help the group rake in cash from lucrative trades.
https://www.washingtonpost.com/news/the-switch/wp/2015/08/11/hackers-who-breached-corporate-wires-made-millions-off-insider-trading/
Hackers who breached corporate wires made millions off insider trading
By Drew Harwell
August 11, 2015 at 12:47 PM
* * *
Vitaly Korchevsky, 50, is escorted in handcuffs from his home in Pennsylvania by agents from the FBI in Pennsylvania on Tuesday morning. He was one of nine people arrested on Tuesday morning.
[video embedded]
[From article]
An international web of hackers and traders made $100million on Wall Street by stealing a look at corporate press releases before they went out and then trading on that information ahead of the pack, federal authorities charged Tuesday.
Authorities said it was the biggest scheme of its kind ever prosecuted, and one that demonstrated yet another way in which the financial world is vulnerable to cybercrime.
The hackers pulled it off by breaking into the computers of some of the biggest business newswire services, which put out earnings announcements and other press releases for a multitude of corporations.
Those releases were by Marketwired of Toronto, PR Newswire in New York and Business Wire of San Francisco.
Nine people in the U.S. and Ukraine were indicted on federal criminal charges, including securities fraud, computer fraud and conspiracy.
[. . .]
Prosecutors said the Ukraine-based hackers were given 'shopping lists' of press releases by the traders.
The hackers then created a 'video tutorial' to help traders see the stolen releases and were paid a portion of the profits from trades based on the information in them, prosecutors said.
Authorities said the scheme involved trades on such companies as Acme Packet Inc, Align Technology Inc, Caterpillar Inc, Dealertrack Technologies Inc, Dendreon Corp, Edwards Lifesciences Corp, Hewlett-Packard Co, Home Depot Inc and Panera Bread Co.
[. . .]
In 2013, for example, the hackers got an early peek at a press release from Panera Bread Company announcing that it was lowering its earnings projections.
The hacking ring bet correctly the stock would fall when the news came out, and turned a profit of about $1million the very next day, according to the indictment.
[. . .]
The most serious charges in the indictment - wire fraud and securities fraud - carry up to 20 years in prison.
http://www.dailymail.co.uk/news/article-3194559/Hackers-100MILLION-Wall-Street-stealing-corporate-press-releases.html
Hackers made $100MILLION on Wall Street by stealing corporate press releases before they were released and then trading on the information
Hackers stole from Marketwired, PR Newswire, and Business Wire
Prosecutors said the Ukraine-based hackers were given 'shopping lists' of press releases by the traders
Hackers then created a 'video tutorial' to help traders see the stolen releases and were paid a portion of the profits from trades
Scheme involved trades on Panera Bread, Hewlett-Packard, Home Depot and Acme Packet, among others
Nine people in the US and Ukraine were indicted on federal criminal charges, including securities and computer fraud and conspiracy
By Associated Press
Daily Mail (UK)
Published: 21:33 EST, 11 August 2015 | Updated: 01:45 EST, 12 August 2015
August 13, 2015 | 12:25am
* * *
[From article]
An international hacking ring armed with tens of thousands of corporate secrets pocketed more than $100 million from illicit trades, targeting a core vulnerability of the financial system in one of the digital age's most sprawling insider-trading schemes, federal investigators said Tuesday.
Since 2010, more than 30 hackers and traders across the U.S., Ukraine, Russia and other countries coordinated to steal and profit from more than 150,000 press releases, which were scheduled to be delivered to investors from corporate wire services Business Wire, PR Newswire and Marketwired.
[. . .]
Unlike the recent high-profile hacks of health insurers and government agencies, the sophisticated hacks targeted not just people's identities, but corporate intelligence, and some hackers and traders were even aided by former broker-dealers registered with the Securities and Exchange Commission.
By breaking into the wire services, some of Wall Street's most vital and unnoticed information hubs, investigators said the hackers and traders were able to defraud investors on a massive scale while leaving no public trace, a worrying development for the increasingly intricate networks that keep the financial world online.
[. . .]
“The traders were market-savvy, using equities and options … to maximize their profits.”
The years-long subterfuge highlights the hidden danger of modern finance and the broader Web, in which any one compromised link in the larger chain can quietly endanger the system for years. The hackers, experts said, didn't have to breach many individual companies or vacuum up a large amount of files to succeed. Instead, they hit data-rich clearinghouses knowing exactly what they wanted, ensuring an efficient attack.
[. . .]
Federal agents on Tuesday began arresting suspects Tuesday, with nine facing criminal charges for their role in grabbing $30 million in profits.
Authorities said they have also seized a house boat, an apartment complex, a shopping center and a dozen other properties, as well as more than a dozen brokerage accounts holding $6.5 million.
[. . .]
The ability to see a stock's near-future generated windfalls at warp speed; in one instance, traders made half a million dollars in 36 minutes. In a 2013 scheme, the traders bought more than $8 million in shares of Align Technology after stolen documents showed that the medical-device maker's revenues had recently soared. One day later, when the news went public, the traders cashed out for a profit of more than $1.4 million.
[. . .]
The hackers tapped an armament of brute-force, injection and "spear-phishing" attacks, bulldozing through security systems, implanting malicious code or persuading employees to click on booby-trapped links.
[. . .]
The traders were helped by four co-conspirators in Alpharetta and Suwanee, Georgia; Glenn Mills, Pennsylvania; and Brooklyn, two of whom were formerly broker-dealers registered with the SEC.
[. . .]
In 2013, investigators said, the team explored even newer ways of defrauding trades, including tricking sellers by rapidly buying and cancelling trades, which one called a "special daytrading strategy."
[. . .]
another hacker group, called FIN4, had targeted the computer networks of more than 100 health care, law and pharmaceutical firms, hoping to grab insider intelligence on "impending market catalysts" that could help the group rake in cash from lucrative trades.
https://www.washingtonpost.com/news/the-switch/wp/2015/08/11/hackers-who-breached-corporate-wires-made-millions-off-insider-trading/
Hackers who breached corporate wires made millions off insider trading
By Drew Harwell
August 11, 2015 at 12:47 PM
* * *
Vitaly Korchevsky, 50, is escorted in handcuffs from his home in Pennsylvania by agents from the FBI in Pennsylvania on Tuesday morning. He was one of nine people arrested on Tuesday morning.
[video embedded]
[From article]
An international web of hackers and traders made $100million on Wall Street by stealing a look at corporate press releases before they went out and then trading on that information ahead of the pack, federal authorities charged Tuesday.
Authorities said it was the biggest scheme of its kind ever prosecuted, and one that demonstrated yet another way in which the financial world is vulnerable to cybercrime.
The hackers pulled it off by breaking into the computers of some of the biggest business newswire services, which put out earnings announcements and other press releases for a multitude of corporations.
Those releases were by Marketwired of Toronto, PR Newswire in New York and Business Wire of San Francisco.
Nine people in the U.S. and Ukraine were indicted on federal criminal charges, including securities fraud, computer fraud and conspiracy.
[. . .]
Prosecutors said the Ukraine-based hackers were given 'shopping lists' of press releases by the traders.
The hackers then created a 'video tutorial' to help traders see the stolen releases and were paid a portion of the profits from trades based on the information in them, prosecutors said.
Authorities said the scheme involved trades on such companies as Acme Packet Inc, Align Technology Inc, Caterpillar Inc, Dealertrack Technologies Inc, Dendreon Corp, Edwards Lifesciences Corp, Hewlett-Packard Co, Home Depot Inc and Panera Bread Co.
[. . .]
In 2013, for example, the hackers got an early peek at a press release from Panera Bread Company announcing that it was lowering its earnings projections.
The hacking ring bet correctly the stock would fall when the news came out, and turned a profit of about $1million the very next day, according to the indictment.
[. . .]
The most serious charges in the indictment - wire fraud and securities fraud - carry up to 20 years in prison.
http://www.dailymail.co.uk/news/article-3194559/Hackers-100MILLION-Wall-Street-stealing-corporate-press-releases.html
Hackers made $100MILLION on Wall Street by stealing corporate press releases before they were released and then trading on the information
Hackers stole from Marketwired, PR Newswire, and Business Wire
Prosecutors said the Ukraine-based hackers were given 'shopping lists' of press releases by the traders
Hackers then created a 'video tutorial' to help traders see the stolen releases and were paid a portion of the profits from trades
Scheme involved trades on Panera Bread, Hewlett-Packard, Home Depot and Acme Packet, among others
Nine people in the US and Ukraine were indicted on federal criminal charges, including securities and computer fraud and conspiracy
By Associated Press
Daily Mail (UK)
Published: 21:33 EST, 11 August 2015 | Updated: 01:45 EST, 12 August 2015
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