The U.S. Department of Justice has charged a Russian national
living in New York for his alleged role in a $1 million scheme that
hacked into retail brokerage accounts and executed fraudulent
trades.
Petr Murmylyuk, also known as Dmitry Tokar, of Brooklyn, New
York has been charged with one count of conspiracy to commit wire
fraud, unauthorized access to computers and securities fraud. The
Securities and Exchange Commission is also filing a parallel civil
suit. He remains in state custody facing charges from a separate
investigation.
According to the complaint filed in Newark federal court,
Murmylyuk worked with others to steal from online trading accounts
at Scottrade, E*Trade Financial Corp. (ETFC), Fidelity, Charles
Schwab Corp. (SCHW) and other brokerage firms. The members of the
ring changed the phone numbers and email addresses on these online
accounts to prevent notice of unauthorized trading going to the
victims, the DOJ said. The hackers then used stolen identities to
open additional accounts at other brokerage firms and caused the
victims' accounts to make unprofitable and illogical trades with
the new accounts that benefited the hackers, the DOJ said. The
firms have reported combined losses to date of approximately $1
million as a result of the scheme.
Murmylyuk and a conspirator recruited foreign nationals living
in the U.S. to open bank accounts into which illegal proceeds could
be deposited. Murmylyuk and the conspirator then transferred the
proceeds of the sham trade to these new accounts, where the stolen
money could be withdrawn, the DOJ said.
Murmylyuk is also accused of calling Trade Station Securities in
which he claimed to be "Dmitry Tokar," through whose brokerage
account the ring placed approximately $200,000 in fraudulent
securities trades, the DOJ said. Murmylyuk was arrested on Nov. 3
in possession of a laptop that evidenced the fraud.
If convicted, Murmylyuk faces up to five years in prison and a
$250,000 fine.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com