Hacker charged for breaching 5 companies for insider trading
- by nlqip
The U.S. Securities and Exchange Commission (SEC) charged Robert B. Westbrook, a U.K. citizen, with hacking into the computer systems of five U.S. public companies to access confidential earnings information and conduct insider trading.
Westbrook then used this nonpublic information to make trades ahead of 14 earnings announcements between January 2019 and August 2020, earning approximately $3,750,000 in illicit profits.
This activity is known as “insider trading,” where an unauthorized individual makes investments based on confidential information not available to the general public.
The British hacker allegedly breached the companies by resetting the passwords of senior executives in the targeted organizations and then hijacking them to access documents or emails containing financial and earnings reports.
Access to email accounts would allow the man to easily wipe traces of this activity, including deleting the password reset alerts or using forwarding rules.
Additionally, Westbrook used anonymous email accounts, VPN services, and Bitcoin to perform the illegal investments while hiding his identity. However, the SEC says it was still able to track him down using data analytics.
Westbrook now faces both civil charges from the U.S. Securities and Exchange Commission (SEC) and criminal charges from the U.S. Attorney’s Office for the District of New Jersey.
The SEC charged Westbrook with violating the antifraud provisions of the Securities Exchange Act of 1934, while the criminal charges will likely comprise wire fraud, securities fraud, and unauthorized access to computer systems (hacking).
The above could carry significant prison sentences, hefty fines, often higher than the profit gained from illicit investment activities, and an order barring Westbrook from trading in securities in the future.
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The U.S. Securities and Exchange Commission (SEC) charged Robert B. Westbrook, a U.K. citizen, with hacking into the computer systems of five U.S. public companies to access confidential earnings information and conduct insider trading. Westbrook then used this nonpublic information to make trades ahead of 14 earnings announcements between January 2019 and August 2020, earning…
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