By Marcos Colón
December 28, 2016
The Department of Justice (DOJ) has announced the arrest of three men who allegedly hacked prominent U.S. law firms to siphon sensitive data that allowed them to commit insider trading violations.
The unsealed 13-count superseding indictment charges the trio – including recently arrested Macau resident Iat Hong – with devising and carrying out a scheme to enrich themselves by obtaining and trading on material stolen from the hacked networks, according to a DOJ release. Hong was arrested on Christmas day and is now pending extradition proceedings.
The defendants allegedly infected the Web servers of two major New York law firms with malware, which ultimately allowed them to steal confidential data and emails related to impending merger and acquisition deals tied to its clients. With the stolen information, they were able to profit at least $4 million through insider trading.