Home / Top Story / Israeli’s Arrested Over JP Morgan Hack, Complex Fraud Revealed

Israeli’s Arrested Over JP Morgan Hack, Complex Fraud Revealed

Israeli’s Arrested Over JP Morgan Hack, Complex Fraud Revealed   http://locksnews.com

Authorities have arrested two people in Israel, charged with a multi-million dollar stock manipulation scheme. A third person is still at large. Two other people were arrested in Florida, charged with operating an unlicensed money-transfer business using bitcoins. The arrests are part of the investigation into last year’s computer hacks of JP Morgan Chase & Co. and other financial institutions. The arrests have revealed a complex ‘securities fraud scheme’ with tentacles reaching ‘Tel Aviv, West Palm Beach and Moscow.’ Initially the blame was put on Russia, and raised a chorus of allegations against the Russians over cyber security attacks and the vulnerability of financial institutions. The massive breach on JP Morgan, made the bank build a new security services building right next to the NSA (‘National Security Agency’) near Fort Meade, Maryland. Bloomberg reports: Officials in Israel this morning picked up two men charged in the U.S. with running a multimillion-dollar stock manipulation scheme. A third person remains at large. In another case in Florida, officials arrested two men for operating an unlicensed money-transfer business using bitcoins. Though these are separate cases, some of the individuals are linked. A principal in the alleged securities-fraud scheme is a business associate of  one of those charged in the Florida bitcoin operation, a friendship dating back more than a decade to their days at Florida State University.

The two are also identified in a previously unreported FBI memo that connects them to the investigation of the hack of JP Morgan as well as to incidents at Fidelity Investments Ltd. and E*Trade Financial Corp. JPMorgan officials argued initially that one of the largest U.S. bank hacks in history was the work of the Russian government.

None of the documents outlining the charges mention the JP Morgan hack, nor do prosecutors tie the securities fraud and money-transfer schemes to each other.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Read previous post:
AMD’s GPU performance under Linux can be boosted by renaming certain executables

Share This article For most of the past decade, the idea of gaming under Linux was a contradiction in terms....

Close