SEC charges trader with hijacking accounts

Reuters News
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Posted: Jan 26, 2012 2:58 PM
SEC charges trader with hijacking accounts

By Sarah N. Lynch

WASHINGTON (Reuters) - U.S. securities regulators charged a Latvian trader with reaping more than $850,000 in illegal profits by hacking into online brokerage accounts and manipulating more than 100 securities.

In a complaint filed in federal court in San Francisco on Thursday, the Securities and Exchange Commission said Igors Nagaicevs broke into accounts at large U.S. brokerages and drove up stock prices by making unauthorized purchases and sales.

Separately, the SEC also took administrative enforcement action on Thursday against four electronic trading firms and eight executives, saying they all enabled Nagaicevs's scheme by giving him "anonymous and unfiltered access" to the U.S. market.

Two individuals and one firm have agreed to settle the matter, the agency said.

(Reporting By Sarah N. Lynch; editing by John Wallace)