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ARREST AND EXTRADITION OF SECURITIES FRAUD ACTOR

The National Police of Ukraine arrested Vytautas Parfionovas on October 24, 2019 and extradited him to the US on November 21, 2019.

Parfinovas and his associates allegedly illegitimately accessed a server of a securities order management company, stole login information of securities brokerage accounts, gained illegitimate access to these accounts, placed unauthorized trades, and stole approximately $5.5 million from the accounts.

See https://www.justice.gov/usao-edny/pr/alleged-cybercriminal-charged-unauthorized-computer-intrusion-wire-fraud-securities.

In November 2017, the US Department of Justice indicted an associate of Parfinovas, Joseph P Willner, for conspiracy to commit wire fraud, conspiracy to commit securities fraud and computer intrusions, securities fraud, and conspiracy to commit money laundering.

See https://www.justice.gov/opa/pr/day-trader-indicted-computer-hacking-and-securities-fraud-scheme-targeting-online-brokerage.

On July 16, 2019, Willner pleaded guilty to conspiring to commit securities fraud and illegally profiting from a series of coordinated trades.

See https://www.justice.gov/usao-edny/pr/day-trader-pleads-guilty-computer-hacking-and-securities-fraud-scheme-targeting-online.

The NCFTA and brokerage firms that are members of the NCFTA started to share intelligence on this matter and referred it to the FBI in 2013 (and continued to share a very significant amount of intelligence via intelligence reports, listservs, and working groups through 2018).

The extradition of Parfinovas is significant, because the US and Ukraine do not have an extradition treaty and he is the first person who Ukraine has extradited to the US under a new “simplified procedure”.

See https://www.foxnews.com/world/ukraine-police-hacker-wanted-us.

By | 2020-01-28T12:33:15-05:00 December 3rd, 2019|Blog|Comments Off on ARREST AND EXTRADITION OF SECURITIES FRAUD ACTOR