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Globe/wire say SEC alleges Chinese men hacked law firms

2016-12-28 07:53 ET - In the News

The Globe and Mail reports in its Wednesday edition that three Chinese citizens have been criminally charged in the United States with trading on confidential corporate information obtained by hacking into networks and servers of law firms working on mergers. A Reuters dispatch to The Globe says that Iat Hong of Macau, Bo Zheng of Changsha, China, and Chin Hung of Macau were charged in an indictment filed Tuesday in Manhattan Federal Court with conspiracy, insider trading, wire fraud and computer intrusion. Prosecutors said that the men made more than $4-million (U.S.) by placing trades in at least five company stocks based on inside information from unnamed law firms, including about deals involving Intel and Pitney Bowes. The men listed themselves in brokerage records as working at information technology companies, the Securities and Exchange Commission said in a related civil lawsuit. Mr. Hong, 26, was arrested on Sunday in Hong Kong, while Mr. Hung, 50, and Mr. Zheng, 30, are not in custody. The case follows warnings by U.S. officials that law firms could become prime targets for hackers. U.S. Attorney Preet Bharara said that the case "should serve as a wake-up call for law firms around the world."

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