Ukrainian sentenced in hacking scheme
A Ukrainian hacker involved in an international scheme that used stolen unpublished news releases to make about $30 million in profits was sentenced Monday to 30 months in prison.
Vadym Iermolovych, 29, must also pay slightly more than $3 million in restitution. He had pleaded guilty in May 2016 to aggravated identity theft and conspiracy to commit wire and computer hacking.
The Kiev man was among several people arrested in August 2015 in the United States and Ukraine, according to the U.S. attorney’s office in New Jersey. From 2010 to 2015, authorities said, the group gained access to more than 150,000 news releases that were about to be issued by Marketwired, PR Newswire in New York, and Business Wire of San Francisco. The news releases contained earnings figures and other corporate information.
The defendants then used about 800 of those news releases to make trades before the information was reported.
Charges were filed in federal court in Newark because some trades were done in New Jersey.