Stolen accounts used to boost stocks
vnunet.com, 11 Sep 2008
A Malaysian hacker has been sentenced to two years in prison by US authorities for breaking into stock trading accounts and using them to ramp up prices in useless shares.
Thirugnanam Ramanathan, 35, joined a group of hackers who bought low value shares from February to December 2006 then used stolen internet stock accounts to buy the same shares, thereby boosting the price.
The man pleaded guilty to one charge of conspiracy to commit wire fraud, securities fraud, computer fraud and aggravated identity theft and was sentenced to two years in prison, fined $362,247 and given three years of supervised release.
At least 60 customers and nine brokerage firms in the US have been identified as victims.
According to information presented during the sentencing hearing, brokerage firms sustained more than $300,000 in losses during Ramanathan's participation in the scam.
Two other men, Jaisankar Marimuthu, 33, and Chockalingham Ramanathan, 34, have been named as co-conspirators.
Marimuthu is currently in prison in Hong Kong awaiting extradition. Ramanathan is still at large.
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