Russians and SEC working to shut down stock hacker

The SEC is helping Broco in its investigations

The ongoing case against hackers using stolen share trading accounts to manipulate stocks is seeing good co-operation between Russian businesses and the Securities and Exchange Commission (SEC).

The case against Russian firm Broco now looks to be developing into a search for a client who used the company's share dealing system to illegally manipulate stock prices on the New York Stock Exchange.

"The equivocal account belongs to our client," said Dmitry Zelenko, head of Broco's legal department.

"This client has been conducting his trading on his own and Broco has just provided him with technical facilities and brokerage services in co-operation with licensed Genesis Securities. This account was identified as belonging to Broco by a mistake."

The company is now working with the SEC to find the perpetrators and hunt them down.

"Our further steps are to initiate criminal proceedings of swindlers within Russian Federation, to recover damages from the swindlers and to protect the company's reputation in the court of New York," said Valery Maltsev, president of Broco.

The SEC told V3.co.uk that it is happy that Broco is working to sort out the problem, while not wishing to comment on current legal action.

"Broco has been fully co-operative and we both look forward to a speedy resolution," said Justin Chretien assistant chief litigation counsel for the SEC. "We're happy to have such co-operation."