Jonathan Stempel

NEW YORK (Reuters), A British citizen has been accused of stealing investors’ money by hacking into computers and email servers belonging to U.S banks and brokerages. The crime caused more than $5 million in losses.

A 10-count complaint was made public Tuesday. It states that Idris Dayo Musapha (32), and others used phishing to get user names and passwords to access online brokerage and bank accounts between January 2011 and March 2018.

Prosecutors claimed that the Lagos native and co-conspirators first transferred victim’s money into their accounts.

According to them, once banks started blocking transfers, conspirators would execute unauthorized stock trades from compromised accounts and profitably trade the exact stocks they own.

Mustapha was speaking with an unknown coconspirator (a Lithuanian national) in April 2016. The conversation concerned whether to make unauthorized wire transfers or trades into one brokerage’s accounts.

Mustapha stated that it was better to trade up or down, and not directly fraud wire.

A statement. Brooklyn U.S. attorney Breon Peace said Mustapha was part of “a nefarious organization that caused millions in losses to victims through engaging in a litany cybercrimes.”

Mustapha’s New York-based lawyer did not respond immediately to inquiries for comment.

After Mustapha’s August 2021 arrest, the United States wants to exonerate him.

Mustapha could spend up to 20 years prison if convicted on wire fraud, securities fraud or money laundering charges. He also faces two years imprisonment for aggravated theft.

2016: The U.S. Securities and Exchange Commission imposed an asset freeze on Mustapha as part of a Manhattan civil suit that was also filed against him for hacking brokerage accounts.

U.S., v. Mustapha. U.S. District Court Eastern District of New York. 17-mj-00367.