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The US Securities and Exchange Commission (SEC) has accused British national Robert B. Westbrook of hacking into the computer systems of five US companies. According to investigators, Westbrook obtained classified information about the organizations’ income and used it to illegally trade shares, earning about $3.75 million.
According to the lawsuit, Westbrook hacked into companies’ systems between January 2019 and August 2020, resetting the passwords of top managers. In this way, he gained access to financial data before its official publication (14 quarterly reports) and made stock trades immediately before the results were announced.
This activity is known as “insider trading”, when an unauthorized person makes investments based on confidential information that is not available to the general public.
Despite all attempts to hide his identity — anonymous email accounts, VPN services, and even bitcoins — experts managed to uncover the criminal scheme. Westbrook is now accused of violating the anti-fraud provisions of the Securities Act of 1934. The commission requires the defendant to pay fines, return the illegally earned money with interest, and not violate securities laws again. A criminal case was also filed against Westbrook.
The SEC investigation is currently ongoing.
Source
According to the lawsuit, Westbrook hacked into companies’ systems between January 2019 and August 2020, resetting the passwords of top managers. In this way, he gained access to financial data before its official publication (14 quarterly reports) and made stock trades immediately before the results were announced.
This activity is known as “insider trading”, when an unauthorized person makes investments based on confidential information that is not available to the general public.
Despite all attempts to hide his identity — anonymous email accounts, VPN services, and even bitcoins — experts managed to uncover the criminal scheme. Westbrook is now accused of violating the anti-fraud provisions of the Securities Act of 1934. The commission requires the defendant to pay fines, return the illegally earned money with interest, and not violate securities laws again. A criminal case was also filed against Westbrook.
The SEC investigation is currently ongoing.
Source
