Vadym Iermolovych, a Ukrainian hacker was sentenced today to 30 months in prison for his role in an international scheme to hack into three business newswires, steal yet-to-be published press releases containing non-public financial information, and use that information to make trades that generated approximately $30 million in illegal profits, Acting U.S. Attorney William E. Fitzpatrick announced, according to the official notice by the United States Attoney's Office.
Vadym Iermolovych, 29, of Kiev, Ukraine, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, Iermolovych admitted that he was personally involved in the hacks into Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Victim Newswires”). He admitted to hacking into PRN’s network between January 2013 and March 2013. He also admitted that he obtained a set of user credentials of PRN employees stolen from a computer hack into a social networking website and then used at least one of those credentials to ultimately gain access into PRN’s computer network. Iermolovych also admitted that he sold press releases stolen from the network intrusion into Marketwired, and purchased access into Business Wire’s network, all in furtherance of a larger conspiracy to profit from the stolen draft press releases.
Five other members of the conspiracy – two computer hackers and three securities traders – were charged by federal indictment brought by the District of New Jersey (DNJ). The related 23-count DNJ indictment charged Ivan Turchynov, 29, Oleksandr Ieremenko, 25, and Pavel Dubovoy, 34, all of Ukraine, as well as Arkadiy Dubovoy, 52, and Igor Dubovoy, 30, both of Alpharetta, Georgia. Arkadiy Dubovoy and Igor Dubovoy both pleaded guilty to the wire fraud conspiracy charged in Count One of the DNJ indictment on Feb. 18, 2016 and Jan. 20, 2016, respectively.
In addition to the prison term, Judge Arleo sentenced Iermolovych to three years of supervised release and ordered him to pay restitution of $3,004,685.06.