SEC: Company Hacked News Releases For Profit

Law360, New York (February 26, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission sued a Hong Kong-based accounting company on Monday, alleging that it hacked into the computer systems of at least 12 U.S. companies to get news releases early and then traded on that information, making profits of $2.7 million.

In an emergency federal court action filed in the U.S. District Court for the Southern District of New York, the SEC obtained a temporary order restraining Blue Bottle Ltd. and its CEO Matthew Charles Stokes from violating securities laws.

The complaint alleges...
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