Arkadiy Dubovoy, a man who is accused of hiring hackers to infiltrate the databases of news networks to gain inside information prior to the public release of documents pleaded not guilty on Wednesday, and a judge set his trial date for November 4. The Russian traders son Igor has also been charged in the case.
Dubovoy is one of 32 traders that are accused of being involved in a massive hacking scheme that took place over a five-year period and involved more than 150,000 documents. The traders allegedly gave hackers shopping lists of documents that they wished to acquire prior to their public release. The reported victims of the scheme include news sites PR Newswire, Marketwired and Berkshire Hathaway Inc (NYSE:BRKA)(NYSE:BRKB)s Business Wire.
Related Link: New Opportunities In Cybersecurity
Nine of the 32 defendants face criminal charges including securities fraud, wire fraud and conspiracy. Dubovoy is allegedly one of the most successful of the conspirators, netting more than $11 million in profits from inside information related to companies such as Align Technology Inc (NASDAQ:ALGN) and Caterpillar Inc (NYSE:CAT).
Prosecutors also accuse former Morgan Stanley (NYSE:MS) trader and hedge fund manager Vitaly Korchevshy of netting $17 million in trades based on inside information. According to the U.S. Securities and Exchange Commission, which has also brought civil charges in the case, the conspiracy ring involved traders in New York, Cyprus, France Malta and Russia.
Yet Another Cybersecurity Headline
Following the recent Ashley Madison breach, the trial of these insider traders is just the latest in a constant stream of news headlines that highlights the importance of cybersecurity in the modern world. Traders that want diversified exposure to the cybersecurity world should consider looking at the PureFunds ISE Cyber Security ETF (NYSE:HACK).
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