Russian Sued Over Hacked Brokerage Accounts

This was written by Michael W. Cheek on Wednesday, March 17, 2010, 9:09.

The U.S. Securities and Exchange Commission has accused a Russian national of using hijacked brokerage accounts to illegally earn over $255,000. Valery Maltsev used the hijacked accounts to manipulate the price of shares at 38 companies.

Maltsev would form a legitimate account to buy into each company and then use the hijacked accounts to buy or sell significant portions of them. He would then sell his legitimate shares for a significant premium, according to the lawsuit filed in the U.S. District Court in Manhattan, NY. His fraud cost brokers over $600,000, who had to reimburse their customers.

The suit is seeking to block Maltsev from withdrawing funds from his account with Genesis Securities and force him to repay the money.