The Securities and Exchange Commission (SEC) today announced charges against Robert B. Westbrook, a British national, for hacking the computer systems of five U.S. public companies to obtain non-public information about their corporate earnings. About $3.75 million in ill-gotten gains could be made using the information. By trading ahead of companies’ public earnings announcements.

The SEC’s complaint, filed Sept. 27, 2024, in the U.S. District Court for the District of New Jersey, alleges that, between approximately January 2019 and August 2020, Westbrook accessed the computer systems of public companies. Authorized access was obtained. Income Disclosures – By resetting passwords for accounts of senior level executives.

As a result of these hacks, Westbrook fraudulently obtained material non-public information that he traded in the securities of five public companies prior to the release of at least 14 earnings announcements.

The SEC’s complaint accuses Westbrook of violating the anti-fraud provisions of the Securities Exchange Act of 1934. The complaint seeks a final judgment ordering Westbrook to pay civil penalties, ordering him to repay his ill-gotten gains with prejudgment interest, and enjoining him from future commissions. Violations of charged provisions of federal securities laws.