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Human technology gets corrupted

Human technology gets corrupted
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First Published: Mon, Mar 12 2007. 10 12 PM IST
Updated: Mon, Mar 12 2007. 10 12 PM IST
AP
WASHINGTON: Three men from India were indicted Monday on federal charges of hacking into online brokerage accounts and pumping up stock values to turn a hefty profit for themselves.
The alleged “hack, pump and dump” scheme has cost one brokerage firm at least $2 million (Rs9 crore)in losses. An estimated 60 customers and nine US brokerage firms were duped in the case during a four-month period last year, prosecutors said.
According to the 23-count indictment, unsealed in Omaha, Neb., the three men bought stocks through the US online firms with their own accounts. Operating from Thailand and India, they allegedly used stolen identity information to pose as other online share-buyers inflating the value of the stock. The men then sold their own shares at a higher price,turning in a substantial profit.
Two of the three suspects, namely Jaisankar Marimuthu, 32, of Chennai, India, and Thirugnanam Ramanathan, 34, an Indian native who lives in Malaysia were arrested in recent weeks in Hong Kong, the Justice Department said. However, the third, Chockalingam Ramanathan, 33, also of Chennai, India happens to be large.
The case marks the first time hackers suspected of defrauding US based online brokerage firms have been arrested overseas. Assistant Attorney General Alice Fisher said such cases “pose serious risks to investors and brokerage firms across the globe.”
Additionally, the Securities and Exchange Commission filed civil charges against all three men in a federal court in Nebraska. The SEC has investigated several similar cases in recent months.
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First Published: Mon, Mar 12 2007. 10 12 PM IST
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