The U.S. Department of Justice (DoJ) has filed charges against a 39-year-old UK national, Robert Westbrook, for his involvement in a fraudulent scheme that resulted in illegal profits amounting to almost $3.75 million. Westbrook, who hails from London, was apprehended last week and is set to be extradited to the U.S. to face charges related to securities fraud, wire fraud, and five counts of computer fraud.
Court documents reveal that Westbrook allegedly orchestrated a fraudulent scheme between January 2019 and May 2020, allowing him to amass millions in profits by gaining unauthorized access to Microsoft 365 accounts belonging to corporate executives. The DoJ stated that Westbrook illicitly accessed Office 365 email accounts of corporate executives employed by certain U.S.-based companies on at least five occasions to extract non-public information, particularly details about impending earnings announcements.
Subsequently, Westbrook utilized this privileged information to purchase securities and capitalize on them by selling them shortly after the information became public knowledge. He also reportedly set up auto-forwarding rules to redirect content from compromised email accounts of corporate executives to email accounts under his control, further concealing his tracks.
The Securities and Exchange Commission (SEC) disclosed that Westbrook deceptively acquired sensitive information from five public companies ahead of at least 14 earnings announcements by resetting the passwords of the executives’ accounts. Despite Westbrook’s efforts to mask his identity through the use of anonymous email accounts, VPN services, and bitcoin transactions, the SEC’s advanced data analytics, crypto asset tracing, and technology managed to unveil the fraud, highlighting the agency’s capabilities in detecting sophisticated international hacking incidents.
If convicted, Westbrook faces severe penalties, including a maximum potential sentence of up to 20 years in prison and fines amounting to $5 million for securities fraud. The wire fraud charges carry a similar maximum sentence of 20 years in prison and a fine of either $250,000 or double the gain or loss from the offense, whichever is higher. Each count of computer fraud could result in a maximum penalty of five years in prison and fines of up to $250,000 or double the gain or loss from the offense, whichever is greater.
The intricate nature of Westbrook’s fraudulent activities underscores the importance of stringent cybersecurity measures and regulatory oversight to protect against financial fraud and insider trading schemes. The case serves as a reminder of the ongoing threat posed by cybercriminals and the necessity for robust enforcement actions to safeguard financial markets and investor interests.
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