Empire States Blog

US CYBER FRAUD: THREE MEN ACCUESED OF $4m INSIDER DEAL

    

Three Chinese citizens accused of hacking into computers of American law firms advising on company mergers have been charged with multi-million dollar cyber fraud in New York.

Prosecutors said the trio made more than $4m by using information they obtained through hacking into some of the top law firms.

They profited by buying stock in firms imminently about to be acquired.

One of the defendants has been arrested while the other two are still at large.

Manhattan Attorney Preet Bharara warned the case should serve as a wake-up call for law firms who now have to worry about cyber fraud in addition to the threat posed by a rogue employee making money out of forthcoming mergers and acquisitions.

The three Chinese men have been charged with conspiracy, insider trading, wire fraud and computer intrusion.

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