On May 22, 2017, Vadym Iermolovych, a Ukrainian hacker, was sentenced to 30 months in prison, three years of supervised release, and was ordered to pay $3,004,685.06 in restitution for his involvement in a conspiracy to hack into three business newswires and gain early access to press releases containing non-public financial information about hundreds of companies, including Hewlett Packard, Home Depot, and Panera Bread Co.  Iermolovych previously pled guilty to conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft.  He admitted that he gained access to one newswire’s network using credentials obtained through a social media hack, purchased access to another newswire’s network, and sold soon-to-be-published press releases, as well as access to the newswires’ networks, to securities traders.  According to indictments, these traders made “wish lists” of press releases to which they wanted early access that they shared with the hackers involved in the conspiracy, and the conspirators used foreign shell corporations to share in the profits of their scheme.  Allegedly, the conspirators’ illegal trading generated around $30 million.  In addition to Iermolovych, nine others have been charged for their roles in the conspiracy, either as hackers or traders.  Five of these charges have been brought in the District of New Jersey, four have been brought in the Eastern District of New York, and three of those charged have pled guilty to wire fraud conspiracy to date.  United States v. Iermolovych, 2:16-cr-00235 (D.N.J.).

DOJ Press Release