Business

USA accuses 3 Chinese men of hacking law firms

A trio of Chinese nationals has been charged in a Manhattan federal court with insider trading after allegedly hacking into servers at USA law firms.

They allegedly used the information they stole to purchase the shares of three companies ahead of public announcements that those companies had entered into agreements to merge.

"This case of cyber meets securities fraud should serve as a wake-up call for law firms around the world: you are and will be targets of cyber hacking, because you have information valuable to would-be criminals", Manhattan U.S. Attorney Preet Bharara said in a statement Tuesday.

According to SFGate, Ian Hong, Bo Zheng and Hung Chin were accused by the Securities and Exchange Commission and the USA attorney's office for the Southern District of NY for illegal profits from stock trades based on nonpublic information from April 2014 to late 2015. Hung, 50, and Zheng, 30, are not in custody, authorities said. At least two of the firms targeted were successfully hacked and insider information was stolen from their computers.

The Securities and Exchange Commission filed a parallel civil lawsuit that seeks an asset freeze aimed at preventing the alleged suspects from cashing in on their alleged trading gains.

In addition, the defendants are alleged to have repeatedly attempted unauthorised access to the networks and servers of five other firms.

While the law firms were not identified in the indictment, information on companies being targeted for acquisition helped the trio benefit from speculative stock purchases due to their inside line on what could happen with sales of the companies. Three Chinese allegedly targeted emails of Intel's law firm. Following Hong's arrest on Christmas Day, he now faces extradition proceedings and is expected to reappear in court on 16 January 2017.

The group was able to breach at least two different high-profile law firms based in NY, which the DoJ has neglected to name. The defendants also traded shares of pharmaceutical company InterMune and e-commerce company Borderfree in advance of merger deals announced in 2014 and 2015, respectively, according to the SEC. They allegedly sold the shares for roughly $1.4 million in profits - the result of sales carried out days as the Altera shares soared approximately 26% after The Wall Street Journal reported the Intel-Altera talks.

At least seven firms were targeted by the alleged perpetrators between April 2014 and late 2015, according to the charges.



Like this

Latest


28 December 2016
Giant seal dents vehicle hood while roaming Australian neighborhood
Found on Penquite Road the seal didn't take lightly to a resident's vehicle , deciding to hop on top and make its presence known. The seal has already made its mark in Newstead, climbing on to a auto to leave large dents and a broken windscreen in its wake.

28 December 2016
Don't Worry, Britney Spears Is 'Alive And Well'
The Sony Music Global and Bob Dylan Twitter accounts were hacked Monday morning, both stating that Spears had died . However, the music company later confirmed that the mum-of-two is alive and well and that they'd been hacked.

28 December 2016
Troy Ave Released From Hospital With Bullet Lodged in His Head
He survived the incident and was admitted to a local hospital, where he received some moral support from fellow NY native 50 Cent. Troy Ave is now free on $500,000 bail, over another deadly shooting in May at a T.I. concert, at Irving Plaza.

28 December 2016
Beijing slams act allowing US Taiwan military links
China's Foreign Ministry urged the USA to abide by its earlier commitment and to curb its military ties with Taiwan. Department of Defense should conduct a program of senior military exchanges between the United States and Taiwan".

27 December 2016
Queen's granddaughter Zara Tindall and her husband Mike lose their baby
She won the Eventing World Championship in 2006 and was subsequently named BBC Sports Personality of the Year. She and her husband, former rugby player Mike Tindall , are already parents to 2-year-old daughter Mia .

26 December 2016
Champion Cavs host Warriors in National Basketball Association holiday treat
Kevin Durant was merely an observer during recent Cavaliers-Warriors battles. The Warriors come into the game healthy and determined to get the win.

25 December 2016
Dolphins ride RB Jay Ajayi to doorstep of playoffs
Across seventeen years of playoff exile, the Buffalo Bills have stumbled upon landmines of every make and model. Clay caught eight passes for 85 yards and scored twice for the first time in his two seasons with the Bills.

24 December 2016
Google sued over employee novel-writing rules
Doe says that as an example, the training program says to suppress information regarding Google products that may be unsafe . The suit also alleges that Google employees are prohibited from revealing salaries and compensation to a potential employer.

23 December 2016
Brad Pitt slams Angelina Jolie in court documents
Jolie now has the opportunity to respond to Pitt's latest filing before the judge makes a final decision about his request. People obtained a copy of the documents, and Pitt is not holding anything back.

22 December 2016
Blac Chyna leaves Rob Kardashian, takes baby
Until last night, when she couldn't resist hopping into Rob's comments to call him out on his moaning and groaning. She said that Rob had "confessed" to her that he goes into Chyna's phone 'all the time and never finds anything'.



Recommended