Two Ukrainian defendants to pay $ 30 million to the Securities and Exchange Commission

Ukrainian based firm, Jaspen Capital Partners Limited and Chief Executive Officer (CEO), Andriy Supranonok had agreed to pay $30 million to settle U.S. Securities and Exchange Commission (SEC) civil insider trading charges on Monday (September 14).

SEC had charged the two to have traded on information from illegally obtained news releases.
The company had become the first of 34 defendants to settle SEC charges over allegations of theft of more than 150,000 press releases from Newswire before the news became public.

Traders would sometimes create what prosecutors called “shopping lists” of companies that were expected to make announcements and pass them on to hackers.

The illegal profit generated by traders over a period of five years is estimated to be around $ 100 million while Jaspen and Supranonok made approximately $25 million buying and selling contracts-for-differences (CFDs), which are derivatives allowing for leveraged stock price bets, to trade from 2010-2015 trading on press releases stolen from newswire service.

The case was filed in U.S. District Court for the District of New Jersey, which entered an asset freeze and other emergency relief against Jaspen and Supranonok, among others. Nine of the defendants also face criminal charges, though Jaspen and Supranonok were not criminally charged.

Without admitting or denying the SEC’s allegations, the two defendants agreed to transfer $30 million of ill-gotten gains from the accounts which were frozen a month ago.

"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,” said SEC enforcement chief, Andrew Ceresney.

The settlement between Jaspen and Mr. Supranonok must be approved by a court.

The SEC said its civil case will continue against the other 32 defendants.


  
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