Security News > 2023 > September > Russian infosec boss gets nine years for $100M insider-trading caper using stolen data

Vladislav Klyushin, the Russian owner of security penetration testing firm M-13, was jailed for nine years in the US on Thursday, for his involvement in a cyber-crime operation that stole top corporations' confidential financial information to make $93 million through insider trading.

His alleged Russian co-conspirators, Ivan Ermakov and Nikolai Rumiantcev, remain at large.

"Klyushin hacked into American computer networks to obtain confidential corporate information that he used to make money illegally in the American stock market," said Acting US Attorney Joshua Levy for the District of Massachusetts, in a statement.

According to the US Justice Department, Klyushin, Ermakov, and Rumiantcev worked at Moscow-based penetration testing firm M-13, which claimed various Russian government ministries as clients.

Klyushin, according to court documents [PDF], personally made about $21 million from the insider trading scheme, and to cover the amount made by his company and through sharing in the profit of investor trades, the government asked for forfeiture on the order of $36.6 million.

Klyushin's attorney Maksim Nemtsev argued for a sentence of no more than 36 months in a memorandum [PDF] to the judge, considering his "Admirable traits." The memo cites various letters from acquaintances attesting to Klyushin's character.

News URL

https://go.theregister.com/feed/www.theregister.com/2023/09/08/russian_insider_training_prison/