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    • Ukrainian Nationals Indicted in Hacking and Securities Fraud Scheme Targeting U.S. Securities and Exchange Commission

      By R. Mitchell - Two Ukrainian men have been charged for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole. In a 16-count indictment unsealed today in the District of New Jersey, Artem Radchenko, 27, and Oleksandr Ieremenko, 26, both of Kiev, Ukraine, are charged with securities fraud conspiracy, wire fraud conspiracy, computer fraud conspiracy, wire fraud, and computer fraud. The SEC also filed a civil complaint today charging Ieremenko along with several other individuals and entities. The wire fraud conspiracy and substantive wire fraud counts with which the defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy, computer fraud conspiracy, and substantive computer fraud counts with which the defendants are charged carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The indictment alleges that Radchenko and Ieremenko hacked into the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system and stole thousands of files, including annual and quarterly earnings reports containing confidential, non-public, financial information, which publicly traded companies are required to disclose to the SEC. The defendants and others then profited by selling access to the confidential information in these reports and trading on this stolen information prior to its distribution to the investing public. “The defendants allegedly orchestrated sophisticated computer intrusions to steal non-public information from the SEC, compromising the integrity of the market and depriving honest investors of a level playing field,” said Assistant Attorney General Benczkowski.  “The Department of Justice will aggressively pursue and prosecute those who attack our financial markets and seek to profit unfairly, no matter where such offenders reside.” “The defendants charged in the indictment announced today engaged in a sophisticated hacking and insider trading scheme to cheat the securities markets and the investing public,” U.S. Attorney Craig Carpenito said. “They targeted the Securities and Exchange Commission with a series of sophisticated and relentless cyber-attacks, stealing thousands of confidential EDGAR filings from the Commission’s servers and then trading on the inside information in those filings before it was known to the market, all at the expense of the average investor.” “Today’s indictment sends a strong message to those criminals who choose to use the cyber-world to profit from network intrusion,” Mark McKevitt, Special Agent in Charge of the Secret Service Newark Field Office, said. “The Secret Service will continue to aggressively investigate cyber-enabled financial crimes and develop innovative ways to combat emerging cyber threats.” “This indictment is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cybercriminals,” FBI Special Agent in Charge Gregory W. Ehrie said.  “Cybercrime knows no boundaries. Dismantling these operations are possible only by working closely with our partners.” According to the indictments unsealed today: From February 2016 to March 2017, Radchenko, Ieremenko, and others conspired to gain unauthorized access to the computer networks of the SEC’s EDGAR system, which is used by publicly traded companies to file required disclosures, such as annual and quarterly earnings reports. These filings contained detailed information about the financial condition and operations of the companies, including their earnings. Such information can, and often does, affect the stock price of the companies when it is made public, and is therefore highly confidential prior to its disclosure to the general public. The EDGAR system allows companies to make test filings in advance of a public filing. These test filings often contain information that is the same as, or similar to the information in the final filing. The defendants stole thousands of test filings before they were released to the public, and sought to profit from their theft by using the information in the test filings to trade before the investing public learned the information. To gain access to the SEC’s computer networks, the defendants used a series of targeted cyber-attacks, including directory traversal attacks, phishing attacks, and infecting computers with malware. Once the defendants had access to the test filings on the EDGAR system, they stole them by copying the test filings to servers they controlled. For example, between May 2016 and October 2016, the defendants extracted thousands of test filings from the EDGAR servers to a server they controlled in Lithuania. Ieremenko was previously charged in a hacking and securities fraud scheme in an indictment in the District of New Jersey. That indictment charged Ieremenko with being part of a large-scale, international conspiracy to hack the computer systems of three newswire organizations and steal press releases containing confidential non-public financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires. The members of the conspiracy profited from the theft by trading on the news ahead of its distribution to the investing public. The indictment unsealed today alleges Ieremenko employed some of the same methods to hack the SEC. Radchenko recruited to the scheme traders who were provided with the stolen test filings so they could profit by trading on the information before the investing public. Armed with the stolen information, the traders profited by executing various trades in brokerage accounts they controlled. In one instance, a test filing for “Public Company 1” was uploaded to the EDGAR servers at 3:32 p.m. (EDT) on May 19, 2016. Six minutes later, the defendants stole the test filing and uploaded a copy to the Lithuania server. Between 3:42 p.m. and 3:59 p.m., a conspirator purchased approximately $2.4 million worth of shares of Public Company 1. At 4:02 p.m., Public Company 1 released its second quarter earnings report and announced that it expected to deliver record earnings in 2016. Over the next day, the conspirator sold all the acquired shares in Public Company 1 for a profit of more than $270,000. Content created by Conservative Daily News is available for re-publication without charge under the Creative Commons license. Visit our syndication page for details and requirements. Ukrainian Nationals Indicted in Hacking and Securities Fraud Scheme Targeting U.S. Securities and Exchange Commission is original content from Conservative Daily News - Where Americans go for news, current events and commentary they can trust - Conservative News Website for U.S. News, Political Cartoons and more. View the original full article

      in Political Conservative News

    • Union: Give Us Money Or Employees Who Are Veterans Will Kill Themselves

      By Luke Rosiak - Secretary of Veterans Affairs Robert Wilkie is furious after a federal union president said that if politicians don’t end the partial government shutdown, federal employees who are veterans will kill themselves. Edward M. Canales, a local union president with the American Federation of Government Employees (AFGE), told ABC News that he’s received calls from veterans who aren’t able to support their families during the shutdown and who express “no positive outlook on the future.” Though there is no indication in the story that the employees were suicidal, ABC said Canales referred employees unhappy with the government shutdown to the Department of Veterans Affairs suicide hotline. “If this shutdown does not stop, we are going to have fatalities. We’re going to have suicides,” Canales, a retired prisons employee and veteran, told ABC. He called the shutdown “shameful” and said it is “slapping every veteran in the face who has served their country.” Veterans who receive care and services from the VA are unaffected by the partial government shutdown; all VA employees are also being paid on time as normal. The VA is fully funded for fiscal year 2019 and all VA operations continue unimpeded, the department said. On Monday, Wilkie fired back at AFGE in a letter to national president J. David Cox, saying AFGE was exploiting “the real tragedy of Veteran suicide to make political arguments about the partial Government shutdown.” He went on to dismantle the stereotype of fragile veterans: In 2016, Cox called the House chairman tasked with overseeing the VA a “fool” and said he would “whoop” the VA secretary’s “ass.” The AFGE represents employees of federal agencies including the VA. The VA employs 300,000 people and its union is particularly strong, fighting to block the firing of employees whose misconduct has harmed veterans, and securing policies that, for example, in some case give current federal employees preference over veterans for job openings. When the Department of Defense and the VA merged two of their hospital as an experiment, they found a massive cultural clash between the VA’s unionized, civilian workforce and the DOD’s enlisted hospital employees. The Navy refused to let VA employees treat military men in the ICU, and the VA and DOD co-directors of the hospital were not on speaking terms. The proposal was supposed to save money by reducing redundancies, but the VA union ensured that no VA employees were laid off even though they weren’t needed, defeating the purpose. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected] Union: Give Us Money Or Employees Who Are Veterans Will Kill Themselves is original content from Conservative Daily News - Where Americans go for news, current events and commentary they can trust - Conservative News Website for U.S. News, Political Cartoons and more. View the original full article

      in Political Conservative News

    • Alabama AG Opens Probe Into ‘False Flag’ Operation Targeting Roy Moore’s Campaign

      By Chris White - Alabama Attorney General Steve Marshall said Thursday that he is opening an investigation into whether a disinformation campaign targeting Republican Roy Moore violated campaign laws and tilted a close election. Democratic operatives allegedly used Facebook and Twitter to undermine support for Moore and boost Democrat Doug Jones, who narrowly won the race. Marshall is worried the ruse affected the outcome of the election, especially considering the rapidly changing nature of social media campaigns. “The information is concerning,” Marshall, a Republican, told The Washington Post. “The impact it had on the election is something that’s significant for us to explore, and we’ll go from there.” Marshall stopped short of suggesting his office begin a formal investigation into Project Birmingham but noted that he will start gathering evidence. “Technology has put us in a difficult position in many respects in terms of the applicability of our current laws,” he added. Reports about the caper began making the rounds after The New York Times reported on the matter on Dec. 19. News of the so-called false flag operation, which involved operatives from American Engagement Technologies (AET) creating fake Russian bots to follow Moore, took off from there. Billionaire Reid Hoffman added fuel to the fire when he apologized Wednesday for funding the effort, but he left crucial questions unanswered. His statement did not include a detailed accounting of everyone involved in the campaign, nor did it explain who crafted and executed the action. Hoffman plowed $750,000 into the organization, much of it going to the project, the report notes. Democratic operatives associated with the plan explained in an internal report leaked to The New York Times how the project sought to implant ideas into people’s heads. The cost of the project totaled $100,000 — the identical amount Facebook says the Russian Internet Research Agency spent trolling people on social media leading up to the 2016 presidential election. The scheme itself likely didn’t shift the election, but the Twitter bot angle gained significant amount of national attention. Local and national media falsely suggested Russia was backing Moore’s candidacy. The Montgomery Advertiser was the first to cover the story. National media outlets quickly followed suit. “Roy Moore flooded with fake Russian Twitter followers,” read the headline on a 2017 New York Post story, which cited the Advertiser. WaPo, for its part, focused on the fact that Moore blamed Democrats for the fake accounts. AET’s founder Mickey Dickerson has not responded to The Daily Caller News Foundation’s repeated requests for comments about the nature of his group’s campaign. Dickerson worked on former President Barack Obama’s 2012 re-election campaign. Hoffman, who has previously said he supports a probe, has also not responded to TheDCNF’s questions. Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected] Alabama AG Opens Probe Into ‘False Flag’ Operation Targeting Roy Moore’s Campaign is original content from Conservative Daily News - Where Americans go for news, current events and commentary they can trust - Conservative News Website for U.S. News, Political Cartoons and more. View the original full article

      in Political Conservative News

    • Group Provides Christian Faith-Based Support to Veterans Who Have Experienced Trauma

      A faith-based organization in Fort Campbell, Kentucky, is working to help veterans and first responders who have experienced trauma to recover physically, mentally and spiritually. View the full article

      in Christian Current Events

    • Veterans Voices | Listening is Honoring

      By R. Mitchell - Andy Fancher is a 19-year-old on a mission to preserve history. For the past three years, he’s been documenting the stories of World War II veterans on his YouTube channel. This Veterans Day, he’s using the StoryCorps app to record an oral history with an important veteran in his life, ... Veterans Voices | Listening is Honoring is original content from Conservative Daily News - Where Americans go for news, current events and commentary they can trust. View the original full article

      in Political Conservative News

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