Georgia Trader Pleads Guilty To Hacked News Release Scheme

A Georgia trader pled guilty to one count of conspiracy to commit wire fraud. The criminal case involved the buying and selling of stock based on information obtained off of hacked press releases stolen from three newswire services. The case was brought before the United District Court for the Eastern District of New York.

The SEC noted that the criminal charges arose out of the same conduct alleged by the SEC in a civil securities fraud action filed in August 2015. The SEC's amended complaint alleged that the trader and over 30 other defendants participated in a far-reaching fraudulent scheme, buying and selling stock over approximately five years on the basis of hacked press releases stolen from three newswire services. The SEC recovered over $52 million and obtained full injunctive relief from the 11 defendants who agreed to settlements in the case.

The pending SEC action against the trader seeks an injunction for violating the federal securities...