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Press Release
Press Release
NEWARK, N.J. – A United Kingdom national has been charged for his execution of a hack-to-trade scheme, through which he generated millions of dollars in profits, U.S. Attorney Philip R. Sellinger announced.
Robert Westbrook, 39, of London, United Kingdom, was arrested in the United Kingdom this week with a view towards extradition to the United States so that he can face an indictment charging him with securities fraud, wire fraud, and five counts of computer fraud.
According to documents filed in this case and statements made in court:
From January 2019 through May 2020, Westbrook executed a hack-to-trade scheme through which he generated millions of dollars in profits. On at least five occasions, Westbrook gained unauthorized access to Office365 email accounts belonging to corporate executives employed by certain U.S.-based companies to obtain non-public information, including information about impending earnings announcements. Westbrook then used that information to purchase securities that he sold in short order for substantial profits after the material information became public. On several occasions, Westbrook implemented auto-forwarding rules designed to automatically forward content from the corporate executives’ compromised email accounts to email accounts controlled by Westbrook. Westbrook generated profits exceeding $3 million dollars through this scheme.
The securities fraud count carries a maximum potential penalty of up to 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum potential penalty of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Westbrook today based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello, Chief of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.