On December 25, 2016, Iat Hong, a resident of Macau, was arrested in Hong Kong and is now pending extradition proceedings in connection with an alleged scheme to trade on material, nonpublic information obtained through hacks of multiple prominent U.S.-based international law firms.  On December 27, 2016, a thirteen count indictment against Hong and two alleged co-conspirators, Bo Zheng and Chin Hung, was unsealed in the SDNY.  According to the indictment, the defendants successfully obtained access to the networks of two U.S.-based law firms between April 2014 and late 2015 in order to access the emails of law firm partners who worked on high-profile M&A transactions.  According to the indictment, after obtaining emails containing material, nonpublic information, the defendants purchased stock in the target companies of certain M&A transactions, allegedly earning over $4 million in profits.  In addition to successfully obtaining inside information from two law firms, the defendants allegedly attempted to gain unauthorized access to the networks and servers of five other law firms.  Separately, the defendants, who were involved in a start-up robotics company, allegedly used similar means to gain unauthorized access to the networks and servers of two robotics companies in order to obtain confidential proprietary design schematics for consumer robotics products.  The defendants were indicted on conspiracy, computer intrusion, wire fraud, and insider trading charges.  United States v. Hong, No. S1 16-cr-360 (S.D.N.Y.). DOJ Press Release