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Pastor sends to prison for insider trading


A former hedge fund manager of U.S., who has also worked as pastor, was send to prison for five years on Thursday (i.e. on March 21, 2019) due to his role in insider trading scheme which involves hacking of major U.S. newswires in order to steal as well as front-run the corporate news announcements. He was also fined as well as ordered to forfeit over 14 million.


Kazakhstan-born Vitaly Korchevsky, aged 53, was a resident of Glen Mills, Pennsylvania. He was sentenced by Raymond Dearie - the U.S. District Judge - in Brooklyn, after he is being convicted last July by a jury following a jury trial of 4 week. Korchevsky was also fined US$ 250,000 by the judge, and has been ordered to forfeit an amount of $14.4 Million after getting convicted in a federal court of U.S. for securities fraud, computer intrusion, conspiracy to commit the securities fraud and wire fraud.


Korchevsky was among the 10 people that include seven traders along with three Ukraine-based hackers, who were criminally charged in New Jersey and Brooklyn for theft of over 150,000 press releases. This theft has been done from PR Newswire, Business Wire and Marketwired of yet to be published press releases between February 2010 and August 2015.


The hackers then passed this stolen information to the traders. As per U.S. authorities, the traders reaped over $100 million from this stolen information.


A securities broker named Vladislav Khalupsky was also convicted for the same charges at the trial of Korchevsky. Khalupsky was sentenced on January 11, 2019, to four years of prison.


As per a statement in Brooklyn by Richard Donoghue, the U.S. Attorney, "Korchevsky and Khalupsky will now pay the price for using their experience as traders to generate millions of dollars in unlawful trades based on hacked information".


Donoghue added that "today's sentence sends a powerful message that, no matter how sophisticated or novel the scheme, cybercriminals and traders who steal information from U.S. companies and undermine the integrity of our financial markets will be held accountable for their actions".


As per the email of Steven Brill, Korchevsky's lawyer, they are thankful to the judge as he recognizes Korchevsky's exceptional character along with lifetime of good deeds at the time of imposing the sentence.


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