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Jaspen Capital Partners and its chief executive, Andriy Supranonok, have agreed to pay $30 million to settle allegations by the Securities and Exchange Commission that they illegally profited from stolen corporate information that was stolen from newswire services.

They were part of a group of 34 traders and hackers charged last month with reaping more than $100 million in illegal proceeds by using nonpublic corporate news releases in a sophisticated and brazen scheme that blended the dark world of online hacking and old-fashioned insider trading.

Mr. Supranonok and Jaspen Capital, based in Ukraine, made around $25 million in illegal profits by buying and selling instruments called contracts-for-difference, or C.F.D.s, used to trade certain stocks. The C.F.D.s were executed based on not-yet-public releases that were stolen from two newswire services from 2010 to 2014, according to the S.E.C. complaint. Earlier this year, Jaspen Capital and Mr. Supranonok made additional profits by trading on information stolen from a third newswire, the S.E.C. said. The releases were obtained by hackers who had infiltrated the systems of all three newswire companies.

“Today’s settlement demonstrates that even those beyond our borders who trade on stolen nonpublic information and use complex instruments in an attempt to avoid detection will ultimately be caught,” Andrew J. Ceresney, director of the S.E.C.’s enforcement division, said in a statement.

Barry Bohrer, Mr. Supranonok’s lawyer, could not be reached for comment.

Dozens of rogue traders in the United States used similar stolen information, which they obtained by sending overseas hackers shopping lists of corporate news releases they wanted to get a sneak peek at before the releases were made public, according to separate but parallel investigations by federal prosecutors in Brooklyn and New Jersey. Hackers working mainly from Ukraine would send email instructions for how to get access to the stolen information.

Vitaly Korchevsky, another trader who was named in the S.E.C complaint, was among several men arrested in August. Mr. Korchevsky, a former hedge fund manager turned Baptist pastor living in a Philadelphia suburb, was accused of making $17 million in illegal profits. A federal judge in Brooklyn granted him bail on Aug. 26.

Another man, Igor Dubovoy, was granted bail on Monday by a judge in New Jersey but remains in detention until he can post $3 million bail and meet several other conditions.

In its original complaint in August, the S.E.C. charged 32 defendants. On Monday, the S.E.C. said it had amended the complaint to charge two additional defendants. Federal prosecutors from Brooklyn and New Jersey have also filed indictments against some of the men.

Read more http://rss.nytimes.com/c/34625/f/640387/s/49d877ed/sc/28/l/0L0Snytimes0N0C20A150C0A90C150Cbusiness0Cdealbook0C30A0Emillion0Esettlement0Ein0Einsider0Etrading0Ering0Elinked0Eto0Ehack0Bhtml0Dpartner0Frss0Gemc0Frss/story01.htm


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