The conspirators made trades based on more than 800 stolen press releases

Trader involved in $100m hacking scheme pleads not guilty

One of the traders allegedly involved in a more than $100m (£65m) insider trading scheme that hacked sensitive corporate news releases has pleaded not guilty.

A total of 32 defendants, including both traders and hackers, were charged last month over an alleged five-year scheme to steal more than 150,000 press releases from Business Wire, Marketwired and PR Newswire before the news became public to help them make favourable stock trades.

Trader Arkadiy Dubovoy, who spoke Russian and used an interpreter, was given a trial date of November 4 after entering his plea before US District Judge Madeline Cox Arleo in Newark, New Jersey, yesterday on charges of securities fraud, wire fraud and conspiracy.

His son Igor also appeared separately yesterday on related charges before US Magistrate Judge Cathy Waldor, also in Newark, and is expected to enter a formal plea at a September 14 arraignment. His lawyer Lawrence Lustberg said he hopes to conclude talks that would allow his client to be released on bail within a few days.

Of the 32 defendants, nine have been criminally charged, including seven who prosecutors said were traders and two who were said to be hackers, with five arrested in the USA and four still at large in Ukraine.

The US Securities and Exchange Commission, which brought related civil charges in the case, said the conspiracy included traders in New York, Cyprus, France, Malta and Russia.

Prosecutors said the traders gave hackers "shopping lists" of press releases and executed trades before more than 800 of the stolen releases were made public. Arkadiy Dubovoy was among the more successful traders, accounting for more than $11m of illegal profit, prosecutors said.

Hedge fund manager Vitaly Korchevsky is accused of making more than $17m in illegal profit, prosecutors said. A federal judge in Brooklyn, New York, ordered his release on $2m bond on August 26.

Last week, Igor Dubovoy had been unable to post a $3m bond set by a federal judge in Atlanta. Prosecutors said the Dubovoys are from Alpharetta, Georgia, an Atlanta suburb.

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