Remarks Prepared for ADIC Diego Rodriguez Concerning International Hacking Ring, Insider Trading Scheme
This is the story of a traditional securities fraud scheme with a twist—one that employed a contemporary approach to a conventional crime.
Unrestricted by distance and limitless in their approach, the defendants allegedly unleashed their attack on the financial markets from both a domestic and international platform. Today, the hackers, traders, and middlemen are charged with using sophisticated hacking techniques to acquire non-public information.
They exploited this information to trade in at least 1,000 “inside the window trades” over the course of three years.
Those of us who invest in the stock and commodities markets know all too well the devastating consequences of these deceptive practices. In this case, the defendants ultimately benefited from more than $30 million in illegal profits.
Today’s indictment sheds light on an increasingly complex threat to both our country and the financial sector.
But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.
Many thanks, as always, to our partners from the Eastern District of New York: Acting U.S. Attorney Kelly Currie; chief of the Business and Securities Fraud Unit Winston Paes; AUSAs in charge of the prosecution: Christopher Ott, Christopher Nasson, and Richard Tucker; and the assistant U.S. attorneys responsible for the forfeiture of assets: Brian D. Morris and Tanisha Payne.
I’d also like to thank U.S. Attorney Paul Fishman and his team from the District of New Jersey.
We received substantial assistance from the United States Secret Service, Cyber Intelligence Section;the Securities and Exchange Commission in Denver, Philadelphia, and New York; and representatives from the FBI’s Newark, Philadelphia, and Atlanta Field Offices.
Last but not least, I extend my sincere congratulations to FBI special agents Jonathan Polonitza and Matthew Taylor; FBI New York Cyber Division; and Supervisory Special Agent Mario Pisano for their work on this investigation.