September 30, 2024 at 06:05PM
The U.S. SEC charged U.K. citizen Robert B. Westbrook with hacking into the computer systems of five U.S. public companies, accessing confidential earnings information, and conducting insider trading. Westbrook made illegal profits of approximately $3,750,000 from 14 trades. He now faces civil and criminal charges, which may result in prison sentences, fines, and a trading ban.
Key takeaways from the meeting notes:
– Robert B. Westbrook, a U.K. citizen, was charged by the U.S. Securities and Exchange Commission (SEC) for hacking into the computer systems of five U.S. public companies to access confidential earnings information and conduct insider trading.
– He made illegal trades ahead of 14 earnings announcements between January 2019 and August 2020, earning approximately $3,750,000 in illicit profits through insider trading.
– Westbrook allegedly breached the companies by resetting the passwords of senior executives to access financial and earnings reports. He also used anonymous email accounts, VPN services, and Bitcoin to conceal his identity, but the SEC was able to track him down using data analytics.
– Westbrook now faces both civil charges from the SEC and criminal charges from the U.S. Attorney’s Office for the District of New Jersey. The charges include violating the antifraud provisions of the Securities Exchange Act of 1934, wire fraud, securities fraud, and unauthorized access to computer systems (hacking).
– If convicted, Westbrook could face significant prison sentences, hefty fines, and an order barring him from trading in securities in the future.