Finance

Arrest in US$4m insider trading case from lawyer hacks

Arrest in US$4m insider trading case from lawyer hacks September 2, 2018Leave a comment
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NEW YORK (US): US prosecutors announced criminal charges Tuesday against three hackers who allegedly made US$4 million in illicit profits from insider trading of info pilfered from legal businesses advising on corporate mergers.

The three defendants, two from Macau and something from China, successfully breached the pc networks of international lawyers with The big apple offices by unlawfully buying a firm employee’s credentials and installing malware on his company’s server, the united states Attorney’s office in New york city said.

The malware permitted the hackers to check law practice communications about greater dozen transactions in 2014 and 2015 who were discussed or contemplated, including some deals this were never consummated.

The hackers then bought shares of firms that would later be acquired, winning big profits.

The hackers allegedly made US$380,000 on trades of Intermune, a medication maker bought by Germany’s Roche in 2014; US$1.4 million in trades on Altera, bought by Intel in 2015; and US$841,000 on Borderfree, acquired by Pitney Bowes in 2015.

“It of cyber-meets-securities fraud should function as wake-up need legal businesses world wide: you might be and will be targets of cyber hacking because you have information valuable to would-be criminals,” US Attorney Preet Bharara said.

The authorities arrested Iat Hong of Macau in Hong Kong, who\’s now pending extradition proceedings. The opposite two defendants, Chin Hung of Macau and Bo Zheng of China, are in large, a spokesman to the US Attorney’s office said.

-AFP

 

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