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Globe says SEC sues nine men over hacked news releases

2015-08-12 08:09 ET - In the News

The Globe and Mail reports in its Wednesday edition U.S. authorities have broken up a five-year scheme in which rogue traders gave overseas hackers a "shopping list" of confidential corporate news releases to steal, generating more than $100-million (U.S.) in illegal profits. A New York Times News Service dispatch to The Globe says authorities filed criminal charges against nine people. At least five men were arrested early Tuesday morning. The case, which links hacking with insider trading, is being brought by federal authorities in New Jersey and in New York. The Securities and Exchange Commission is bringing a parallel lawsuit. The investigation has been in the works for several years, and federal agents began making arrests on Tuesday. In an indictment against five of the men, federal prosecutors in New Jersey said the men broke into companies such as Business Wire, Marketwired and PR Newswire over five years to steal more than 150,000 news releases posted by publicly traded corporations before the information was released to the public. The men, some of them hackers in Eastern European countries who traded on the information, made at least tens of millions of dollars trading with the information.

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