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by Mike Caswell
Vladislav Khalupsky, one of the accused in a newswire hacking scheme that targeted Toronto's Marketwired LP, has received four years in a U.S. jail. Prosecutors said that Mr. Khalupsky, 48, was part of a group of "bad actors" who used stolen information to enrich themselves through insider trading. He traded on news releases obtained ahead of their public release, positioning his associates to profit from the information, the government says.
Mr. Khalupsky's sentence is contained in a judgment released on Thursday, Jan. 17. It comes about six months after a jury in New York convicted him on charges that included wire fraud, securities fraud and money laundering. In addition to the jail term, Mr. Khalupsky must serve two years of supervised release, during which he will be subject to drug testing. He must also forfeit $397,281 and pay restitution in an amount that the judge will determine. (All figures are in U.S. dollars.)
For prosecutors, the sentence falls considerably short of the 11-year term that they had sought. They said that Mr. Khalupsky was an essential part of the fraud, serving as an interpreter of the stolen news releases while working from an office in the Ukraine. His skills were of some importance, as not everybody was able to interpret the stolen news releases quickly enough to turn them into profitable trades.
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