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Russian businessman, others made millions in insider trading through hacking -U.S -Breaking

by Mike Robinson

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© Reuters. The Acting U.S. Assistant Nathaniel Mendell talks to journalists after Vladislav Khlyushin (a Kremlin-linked Russian Businessman) was extradited.

Nate Raymond

BOSTON, (Reuters) – Five Russians, including a Kremlin-linked entrepreneur, are currently in U.S. custody. They ran a massive, $82,000,000 insider trading scheme which allowed them to make a profit off corporate data stolen by hackers.

Vladislav Klyushin was the founder of the Moscow-based Information Technology Company. Prosecutors claimed that the company had strong ties with the Russian government. He was expelled from Switzerland on Saturday to face charges including conspiracy and securities fraud in Boston.

Klyushin was arrested in Switzerland while on ski trip in March. He appeared briefly in a Massachusetts jail in a virtual court hearing. A bail hearing was set tentatively for Thursday.

Prosecutors charged him and other defendants with trading on company earnings reports by hacking into two vendors’ computer systems. These vendors help companies file quarterly and annual reports to the U.S. Securities and Exchange Commission.

These are the companies that were mentioned IBM (NYSE:) Corp, Snap Inc Prosecutors said that (NYSE:) as well as Tesla (NASDAQ:) Inc.

Klyushin (41), and his employees at M-13 LLC, placed trades on behalf of clients as well as for them in return for a portion of their profits.

According to a lawsuit, the SEC stated that this scheme netted $82.5 million between 2018 and 2020.

Ivan Yermakov is one of 12 Russian military intelligence officers accused in 2018 of hacking files belonging to the Democratic Party and Hillary Clinton.

He is still at large along with three others: Nikolai Rumiantcev, M-13 director, and Igor Sladkov, two Russian businessmen, who are accused of trading on hacked information.

Klyushin’s attorneys have claimed that the case was politically motivated. They argued that the true reason he was wanted was because of his contacts with the Russian government. This is part of Washington’s hunt for Russians.

However, Acting U.S. attorney Nathaniel Mendell emphasized Klyushin’s “extensive connections” to Moscow. He also said that authorities didn’t know “where the facts would take us” at the beginning of the two year probe.

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