SEC Charges Suspects Involved In Database Hack

January 15, 2019 - 3:48 pm

NEWARK, N.J. (WCBS 880) — Authorities have filed charges in connection to the 2016 hacking of the Securities and Exchange Commission.

On Tuesday, the SEC announced the civil charges against nine individuals, including a Ukrainian hacker.

Officials said they employed sophisticated hacking methods from all over the world and the hackers are extremely difficult to locate. Though, multiple defendants have now been charged with stealing reports of publicly traded companies before they were made public.

“These draft reports contain valuable information about the company's financial performance, quarterly earnings, year-end earnings and potential mergers and acquisitions amongst other material events,” said New Jersey U.S. attorney Craig Carpenito.

Several of the defendants in this case were also involved in a hack on news wire services back 2015.

“The defendants took advantage of the early access they were able to obtain through their hacking by accessing confidential and non-public news and trading ahead of these announcements and the public disclosure of these reports. They realize huge illicit profits,” Carpenito said.

Authorities say the hackers were able to generate over $4 million.

The top two defendants face indictment and up to 20 years in prison if convicted. They remain at large.