EN / PL
menu

Homepage > News > The US authorities accuse 5 Russians of insider trading for USD 82.5 million

The US authorities accuse 5 Russians of insider trading for USD 82.5 million


The US authorities accused five Russians who used non-public information obtained during hacking attacks to two companies intermediating in submitting corporate reports to the SEC. The seized data on the companies’ performance was used for insider trading, which generated a profit of $ 82.5 million.

Vladislav Klyushin, the owner of the Moscow IT company M-13 LLC, which prosecutors say has extensive ties to the Russian government, was arrested in Switzerland in March this year, while on a skiing trip, and was extradited to the United States last Saturday. Along with four others, he was accused of trading and using corporate earnings reports obtained as a result of hacking into the IT systems of two companies acting as intermediaries in their filing. The clients of the hacked companies included, among others, IBM Corp, Snap Inc, and Tesla.

The break-in was led by Ivan Jermakov – an M-13 employee and a former Russian intelligence officer mentioned among those responsible for interference in the 2018 presidential elections in the United States. The other defendants in the case are Nikolai Rumianttsev, one of the directors at M-13, and Russian businessmen Mikhail Irzak and Igor Sladkov, who, according to the US prosecutor’s office, brokered confidential data. All four remain at large. All were charged with criminal charges.

Klyushin’s employees refute the accusations, calling the case politically motivated, and claim that the real reason for their boss’s arrest is his connections with the Russian state elite.

$82.5 million of unfair profit

According to the US Securities and Exchange Commission (SEC), the acquired information generated a profit of USD 82.5 million in 2018-2020. Insider trading, based on 500 corporate reports obtained prior to publication, was run from 20 different brokerage accounts in Denmark, UK, Cyprus and Portugal.

In addition to trading on their own account, the defendants were said to sell the seized information as well as offer to open positions using it in return for a commission from clients. Klyushin is currently in a Massachusetts prison. A hearing on his possible release on bail is tentatively scheduled for Thursday.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

bucharest exchange with record value of transactions

Stocks Surge on Positive May Jobs Report and Senate Debt Ceiling Bill Approval

Stocks rallied on Friday following the release of a robust May jobs report and news ...
Read More
fdic

FDIC Reports Largest Deposit Decline in US Banks in 39 Years

US banks faced a significant setback in the first quarter as they experienced the largest ...
Read More
nvidia

Nvidia CEO Receives Rock Star Reception in Taiwan as AI Stocks Surge

Jensen Huang, the CEO of chip phenomenon Nvidia Corp. (NVDA), is currently enjoying celebrity treatment ...
Read More
turkish lira

Turkish Lira Hits All-Time Low as Erdogan Wins Re-election

The Turkish lira reached a new record low following the re-election of incumbent President Recep ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top