Foreign Nationals Charged with Hacking the SEC to Steal Financial Statements

cageymaru

cageymaru

Fully [H]
Joined
Apr 10, 2003
Messages
22,080
Two Ukrainians; Artem Radchenko and Oleksandr Ieremenko have been charged with hacking into the Securities and Exchange Commission's (SEC) Electronic Data Gathering, Analysis and Retrieval (EDGAR) system. The cyber-criminals accessed the network and stole thousands of files containing confidential financial statements such as annual and quarterly earning reports. These filings contain non-public information that is required to be reported to the SEC.

The defendants sold this information to others before it was distributed to the general public. This allowed them to affect the stock prices of companies and benefit from orchestrating stock trades based on information not known to the general public. This created an uneven playing field and thus harmed the general public for their own gain. In the 16-count indictment unsealed today, the pair is charged with securities fraud conspiracy, wire fraud conspiracy, computer fraud conspiracy, wire fraud, and computer fraud. "The SEC also filed a civil complaint today charging Ieremenko along with several other individuals and entities."

"The defendants charged in the indictment announced today engaged in a sophisticated hacking and insider trading scheme to cheat the securities markets and the investing public," U.S. Attorney Craig Carpenito said. "They targeted the Securities and Exchange Commission with a series of sophisticated and relentless cyber-attacks, stealing thousands of confidential EDGAR filings from the Commission's servers and then trading on the inside information in those filings before it was known to the market, all at the expense of the average investor."
 
the common person doesn't have to worry about insider trading impacting them. A practice that's just as bad is allowed for the rich to utilize by paywalled super computers and high speed fiber lines directly to the various exchanges so they effectively see the market before everyone else and can make trades in fractions of a second thousands of times before the poors can. If you're not part of these millionaire only trading companies then you're already effectively in an uneven playing field. No insider trading needed.

edit: These companies invest and never lose money, literally every single day they are up. These days, that margin of how far up has decreased but it's still there. Just more hands are in that pot now so the profits are spread much thinner than they were a couple years ago. And they get taxed at the capital gains rate ...which is what it is because there's supposed to be a risk of losing money involved. That risk doesn't exist for these firms.
 
Last edited:
Darth Ender said:
the common person doesn't have to worry about insider trading impacting them. A practice that's just as bad is allowed for the rich to utilize by paywalled super computers and high speed fiber lines directly to the various exchanges so they effectively see the market before everyone else and can make trades in fractions of a second thousands of times before the poors can. If you're not part of these millionaire only trading companies then you're already effectively in an uneven playing field. No insider trading needed.

edit: These companies invest and never lose money, literally every single day they are up. These days, that margin of how far up has decreased but it's still there. Just more hands are in that pot now so the profits are spread much thinner than they were a couple years ago. And they get taxed at the capital gains rate ...which is what it is because there's supposed to be a risk of losing money involved. That risk doesn't exist for these firms.
Click to expand...


Wait, explain that capital gains part please, because I'm not seeing what you are pointing at.

One is taxed at the capital gains rate when their investment runs for less than a one year time period, short term as opposed to long term. I have to pay that rate quite frequently myself. Just a common guy really.
 
Why would they want financial info from the southeastern conference?
 
  • Like
Reactions: mord
like this
haha, if they was actually serious about locking down and prosecuting speculators and manipulators, the entire stock exchange would tank tomorrow, and pretty much all stock exchange firms would close shop, and their multi-millionaire / billionaire traders would be in jail for hundreds of years

and critical information of publicly traded stocks being secret to their own minority stock holders is an encouraged norm? well, guess that says it all
 
"Ukrainians". Sure. Like we are supposed to believe that Putin isn't their master.
 
Anyone know if there is a dollar value placed on the amount of money stolen from Americans by cyber criminals from Russia/eastern europe? Billions?
 
Darth Ender said:
the common person doesn't have to worry about insider trading impacting them. A practice that's just as bad is allowed for the rich to utilize by paywalled super computers and high speed fiber lines directly to the various exchanges so they effectively see the market before everyone else and can make trades in fractions of a second thousands of times before the poors can. If you're not part of these millionaire only trading companies then you're already effectively in an uneven playing field. No insider trading needed.

edit: These companies invest and never lose money, literally every single day they are up. These days, that margin of how far up has decreased but it's still there. Just more hands are in that pot now so the profits are spread much thinner than they were a couple years ago. And they get taxed at the capital gains rate ...which is what it is because there's supposed to be a risk of losing money involved. That risk doesn't exist for these firms.
Click to expand...

For shert term trading this is true. High speed trading shoukd be illegal and the argument that it provides liquidity is just pure BS. For long term investing though they may not play as big or any role at all.
 
TAP said:
Lame justification of foreign individuals stealing hundreds of millions of dollars worth of information.
Click to expand...

Wasn't a justification.. just trying to point out that there is really nothing stopping those in the SEC from committing insider trading. Who polices the SEC? Who polices those who polices the SEC and so on and so forth?
 
cyclone3d said:
Wasn't a justification.. just trying to point out that there is really nothing stopping those in the SEC from committing insider trading. Who polices the SEC? Who polices those who polices the SEC and so on and so forth?
Click to expand...

Theft is theft regardless of your personal feelings about the SEC.
 
You must log in or register to reply here.
Back
Top