$1.5M Extortion Scheme: Cybersecurity Consultant’s Scheme Exposed

A former cybersecurity consultant’s lucrative scheme has been brought to a grinding halt. Vincent Cannady, 57, of El Dorado Springs, Missouri, was arrested this morning in connection with a $1.5 million extortion plot against a publicly traded IT company.

According to the U.S. Attorney’s Office for the Southern District of New York, Cannady used his position to threaten the company with the release of sensitive and proprietary information unless they paid him a hefty sum. The scheme allegedly began after Cannady’s engagement with the company was terminated, and he downloaded the company’s confidential information without authorization.

As alleged in the Complaint, Cannady demanded a $1.5 million payout in exchange for not releasing the information, which he claimed would “imperil the company’s reputation and shake investor confidence.” He also sought to add provisions to a draft settlement agreement that would prohibit the company from pursuing criminal charges against him.

U.S. Attorney Damian Williams vowed to hold perpetrators accountable, stating, “When those entrusted with sensitive information steal that information on their way out the door, only to extort money with a threat of releasing that information, my Office will hold them responsible for their conduct.”

Cannady faces a maximum sentence of 20 years in prison for the Hobbs Act extortion charge. He is expected to appear in Missouri federal court tomorrow.

The case is being handled by the Office’s White Plains Division, with Assistant U.S. Attorneys Reyhan Watson and James McMahon leading the prosecution. The FBI’s New York Field Office and Kansas City Field Office assisted in the investigation.

The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.