A federal jury convicted a former hedge fund manager and a securities trader of securities fraud. The pair used information from stolen press releases to time their trades. Before authorities arrested them, they had made about $30 million in illegal gains.
According to investigators, the jury convicted the men of conspiracy to commit wire fraud and conspiracy to commit securities fraud. In addition, the jury found them guilty of computer intrusion and conspiracy to commit money laundering. They also found the men guilty of two counts of securities fraud.
According to investigators, the pair worked with Ukrainian hackers to steal press releases from major news wire companies. They then used the information to make timely stock trades ahead of the relevant public information release. The fraud took place between 2010 and 2015. Investigators say that targets included Marketwire, PR Newswire and also Business Wire. Investigators noticed a pattern of concentrated trading activity prior to scheduled information releases. Most of the trading profits went to the hackers and off-shore companies. Six of the nine conspirators either pleaded guilty or were convicted. Three of the participants remain at large.
Federal securities fraud attorney
When you face securities fraud charges, hire an experienced securities fraud attorney like Robert Helfend. Mr. Helfend has nearly 35 years of experience in criminal courtroom defense. He takes federal cases in any circuit in the United States.
At the federal level, you’ll confront prosecutors who are well financed. They can simply outlast you in court. That’s why you need an experienced, aggressive attorney who will fight for you. Don’t settle for an inexperienced attorney or one who would rather settle than defend you. Choose an attorney who will stand up for you in court.
Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
Photo Credit: Ian Sane, via Flickr.com