Sept 27 (Reuters) - A British man has been arrested and
charged by U.S. authorities with hacking into the computers of
five companies to obtain details about their expected earnings,
and making $3.75 million of illegal profit by trading before
results were released.
The U.S. Department of Justice will seek the extradition of
Robert Westbrook, 39, of London, to face securities fraud, wire
fraud and five computer fraud charges contained in a criminal
indictment made public on Friday.
Westbrook was arrested this week in the United Kingdom, and
also faces related U.S. Securities and Exchange Commission civil
charges. His lawyer could not immediately be identified.
The companies were not identified by name in court papers
filed in federal court in Newark, New Jersey.
Financial and stock price details in the SEC complaint
suggest the companies are food container maker Tupperware
, general contractor Tutor Perini ( TPC ), software
provider Guidewire Software ( GWRE ), gas station operator
Murphy USA ( MUSA ) and telecommunications equipment maker
Lumentum Holdings ( LITE ).
Authorities said Westbrook's "hack-to-trade" scheme involved
gaining access to executives' email accounts between January
2019 and May 2020, and using material nonpublic information to
buy stocks and options prior to at least 14 earnings
announcements.
On several occasions, Westbrook allegedly implemented rules
to have content from executives' email accounts automatically
forwarded to his own accounts.
Jorge Tenreiro, acting chief of the SEC's crypto assets and
cyber unit, called Westbrook's activity a "sophisticated
international hacking," including the use of anonymous email
accounts, VPN services, and bitcoin to conceal wrongdoing.
None of the five companies was accused of wrongdoing.
The securities fraud and wire fraud counts each carry a
maximum 20-year prison term, while each computer fraud count
carries a maximum five-year term.