Vadym Iermolovych, International Securities Fraud, New Jersey 2024

Newark, N.J. – In a stunning turn of events, Ukrainian hacker Vadym Iermolovych, 29, of Kiev, has been sentenced to 30 months in federal prison for masterminding an international hacking and securities fraud scheme that generated approximately $30 million in illegal profits.

The U.S. Attorney’s Office announced the sentence in a court hearing today, marking the culmination of a years-long investigation into Iermolovych’s cybercrimes. He pleaded guilty to conspiracy charges including wire fraud, computer hacking, and aggravated identity theft.

Iermolovych confessed to breaching three major business newswires – Marketwired L.P., PR Newswire Association LLC, and Business Wire. He admitted to using stolen credentials from a social networking site to infiltrate PRN’s network between 2013 and 2015, selling press releases from his breach of Marketwired, and purchasing access into Business Wire’s systems.

Five other members of the conspiracy were also charged, including two hackers and three securities traders.Arkadiy Dubovoy and Igor Dubovoy, both of Alpharetta, Georgia, pleaded guilty to wire fraud conspiracy charges earlier this year. In New York, Vitaly Korchevsky, Vladislav Khalupsky, Leonid Momotok, and Alexander Garkusha were charged and faced charges ranging from wire fraud to securities fraud.

Between 2010 and 2015, the hackers infiltrated computer networks of public companies, using sophisticated cyber-attacks to steal non-public financial information. They shared this sensitive data with traders who executed trades before the information was publicly released, reaping significant profits.

This case serves as a stark reminder of the evolving nature of financial crimes in the digital age and the relentless efforts by law enforcement to protect against such fraudulent activities.