The U.S. Securities and Exchange Commission (SEC) has charged Robert B. Westbrook, a British citizen, with hacking and insider trading. Westbrook allegedly breached the computer systems of five U.S. public companies to access confidential earnings information before it was publicly released.
- Timeframe: Between January 2019 and August 2020
- Illicit profits generated: Approximately $3,750,000
- Number of affected earnings announcements: 14
Westbrook’s alleged methods:
- Resetting passwords of senior executives
- Hijacking accounts to access confidential documents and emails
- Deleting traces of his activities
- Using anonymous email accounts, VPN services, and Bitcoin to hide his identity
The SEC claims it used advanced data analytics, crypto asset tracing, and technology to uncover Westbrook’s activities despite his attempts to conceal his identity.
Charges:
- Civil charges from the SEC for violating antifraud provisions of the Securities Exchange Act of 1934
- Criminal charges from the U.S. Attorney’s Office for the District of New Jersey, likely including wire fraud, securities fraud, and unauthorized access to computer systems
Potential consequences include significant prison time, large fines exceeding his illicit profits, and a ban from future securities trading.
This case highlights the ongoing challenges of cybersecurity in financial markets and the SEC’s efforts to combat sophisticated hacking and insider trading schemes.
