The Securities and Exchange Commission (SEC) announced charges against British national Robert B. Westbrook for alleged hacking. Computer systems Of the five US public companies.

The SEC alleges that Westbrook used this unauthorized access to obtain non-public information about the companies’ earnings, resulting in an estimated $3.75 million in ill-gotten gains.

Details of charges

According to the SEC’s complaint, which was filed in the U.S. District Court for the District of New Jersey on September 27, 2024, Westbrook’s hacking activities spanned from January 2019 to August 2020.

He allegedly gained access to the companies’ systems by resetting the passwords of senior executives’ accounts. The breach allowed him to trade securities based on insider information before at least 14 public earnings announcements.

The SEC charged Westbrook with violating the anti-fraud provisions of the Securities Exchange Act of 1934. The complaint seeks civil penalties, restitution of ill-gotten gains with interest, and an injunction against future violations of federal securities laws.

The SEC’s advanced investigative techniques

Jorge G. Tenero, Acting Chief of the SEC’s Crypto Assets and Cyber ​​Unit, emphasized the agency’s commitment to combating cyber fraud.

“As this case demonstrates, though, Westbrook took a number of steps to conceal his identity — including the use of anonymity. E-mail accounts, VPN services, and the use of Bitcoin – the commission’s advanced data analytics, crypto-asset tracking, and technology can uncover fraud in even the most sophisticated international hacking cases,” Tenrero said.

The investigation involved a coordinated effort by various SEC units and staff members, who used sophisticated forensic techniques to trace Westbrook’s activities despite efforts to remain anonymous.

Parallel criminal charges

In conjunction with the SEC’s civil charges, the U.S. Attorney’s Office for the District of New Jersey has announced criminal charges against Westbrook.

This parallel action underscores the seriousness of the allegations and underscores ongoing efforts by U.S. authorities to combat international cybercrime.

gave Investigation A team from the SEC’s New York Regional Office and Market Abuse Unit is operating with substantial support from IT forensics staff and economic analysts.

The SEC also acknowledged the support of the Financial Industry Regulatory Authority and the United Kingdom Financial Conduct Authority.