SEC v. Dmitrii Yevgenyevich Kushnarev, No. 1:25-cv-05412-WMR, Northern District of Georgia (Sept. 24, 2025) — Complaint

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
_________________________________________
|

SECURITIES AND EXCHANGE  |
COMMISSION,
|
|

Plaintiff,
|
v
.
|
 CIVIL ACTION NO.
     |
 DMITRII YEVGENYEVICH KUSHNAREV, |          ___________________
(a/k/a          Vitaly          Ershov)
|
(a/k/a
Sergei          Guliugin)
|
(a/k/a Stanislav Iasiukevich)
 |
(a/k/a          Ula          Kairiene)
|                    COMPLAI
NT
(a/k/a Oskaras Korsunovas)     |
(a/k/a          Ilja          Krumberg)
|
(a/k/a Rimantas Labanauskas)
|
(a/k/a Stanislav Lasiukevich)   |
(a/k/a Edmundus Paskevicius) |
(a/k/a Aesop Pozdyshev) |
(a/k/a Denis Pozdyshev)  |
(a/k/a Ruben Salguero Romero) |
(a/k/a Donatas Sestokas)  |
(a/k/a Arnestas Skruibys) |
(a/k/a Dainius Sopranas ) |
(a/k/a          Dmytro          Tkach)
|
(a/k/a
Reiko          Valling)
|
(a/k/
a Ceslovas Verbauskas)    |
(a/k/a Mikhailo Zahorulko)      |
        |
Defendant.
          |
        |
        |
_________________________________________|

Plaintiff Securities and Exchange Commission (“Commission”) alleges as
follows:
SUMMARY

1. Beginning no later than March 2014, and continuing through at least
May 2021 (the “Relevant Period”), Russian national Dmitrii Yevgenyevich
Kushnarev (“Kushnarev”) participated in an “account takeover attack” (“ATO”)
scheme that compromised hundreds of retail brokerage accounts in the United
States and a smaller number in Canada.  These accounts were hacked and used—
without the owners’ knowledge or consent—to buy and sell thinly traded securities
listed on the NYSE, NASDAQ, and OTC Markets.  These ATOs manipulated the
price of the target securities, allowing Kushnarev to take advantage of artificial
price increases by selling previously acquired shares into the market from dozens of
brokerage accounts he maintained under false names.  ATOs by Kushnarev or
unknown persons conspiring with him were also used to force hacked retail
accounts to buy overpriced options on low-volume securities, which Kushnarev
sold to the hacked accounts from one of his numerous alias accounts.
2. During the Relevant Period, Kushnarev was involved in hundreds of
ATOs of U.S. and Canadian retail brokerage accounts at no fewer than 10 brokerage
firms in which hacked accounts were forced to purchase the securities of over 380
different NYSE, NASDAQ, and OTC Market issuers.  Kushnarev generated

approximately $31 million in gross proceeds and $1.5 million in net profits from the
scheme.
3. To avoid detection, Kushnarev made his profitable trades in dozens of
U.S. and offshore brokerage accounts that he established using false identities.  To
establish these alias accounts, Kushnarev submitted account opening applications
containing false information, including false names, false residential addresses, false
citizenship and employment information, and other false personal data.  Kushnarev
submitted electronic images of false passports and other false documents with many
of the applications.  During the Relevant Period, Kushnarev also used false names,
false addresses, and other false personal information to open numerous bank
accounts, which he used to deposit and transfer funds related to the scheme.
4. As a result of the conduct alleged herein, Kushnarev violated, and
unless restrained and enjoined will continue to violate, Section 17(a) of the
Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)], Section 9(a) of the
Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78i(a)] and
Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5
thereunder [17 C.F.R. § 240.10b-5].
JURISDICTION AND VENUE
5. The Commission brings this action pursuant to the authority
conferred upon it by Sections 20(b) and 20(d) of the Securities Act [15 U.S.C. §§

77t(b) and 77t(d)] and Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)].
6. This Court has jurisdiction over this action pursuant to Section 22(a)
of the Securities Act [15 U.S.C. § 77v(a)] and Section 27(a) of the Exchange Act
[15 U.S.C. § 78aa(a)].
7. In connection with the transactions, acts, practices, and courses of
business described in this Complaint, Kushnarev, directly and indirectly, made
use of the means and instruments of transportation or communication in interstate
commerce or the means and instrumentalities of interstate commerce, or the
mails.

8. Venue is proper in this district pursuant to 28 U.S.C. § 1391(c)(3)
because Kushnarev is a foreign national residing outside the United States, and
pursuant to 28 U.S.C. §1391(b)(2) because many of the hacked accounts were
held at a broker-dealer which maintains its computer servers in the Northern
District of Georgia, and because multiple retail account victims resided in the
Northern District of Georgia at the time of the ATOs.
DEFENDANT
9. Dmitrii Yevgenyevich Kushnarev (“Kushnarev”), age 58, is a
Russian national who, on information and belief, resides in Russia.  Kushnarev
served a prison sentence in Russia from 2002-2004 for fraud.

FACTS
10. For his stock manipulation scheme, Kushnarev would acquire shares
of thinly traded NYSE, NASDAQ, and OTC Market stocks in his alias brokerage
accounts.
11. Next, Kushnarev or unknown individuals conspiring with him would
hack into U.S. and Canadian retail brokerage accounts and, posing as the
accountholders, make large unauthorized purchases of the same thinly traded
stocks that Kushnarev had just acquired in his alias accounts.
12. These purchases typically stimulated trading activity in the market
and caused the prices of the target stocks to temporarily increase.
13. Kushnarev would profit from the market manipulation by “selling
into” the hacks from his alias brokerage accounts.
14. Alternatively, Kushnarev would engage in short selling of target
stocks in coordination with the ATOs and cover his position when the stock
prices normalized.
15. At times, Kushnarev or unknown persons conspiring with him would
facilitate his closing out of his short positions by launching ATOs to force the
hacked accounts to sell target shares.  Kushnarev’s stock sales would often
execute against both the forced purchases in the ATOs and purchases by other
uninvolved market participants.

16. As part of the scheme to manipulate share prices, Kushnarev would
at times buy and sell shares of target stocks through his alias brokerage accounts
in advance of the ATOs to increase trading volume and create the appearance of
liquidity in the target stocks.
17. Moreover, in ATOs designed to drive up share prices, Kushnarev or
persons working with him would sometimes engage in unauthorized sales of
target stocks—in addition to unauthorized purchases—to increase trading volume
and create the appearance of liquidity.
18. An example of Kushnarev “selling into” an ATO is as follows: On
April 27, 2016, between 11:51 and 11:58 a.m. ET, a hacked account at a large
U.S. retail brokerage was forced to purchase approximately $125,000 worth of
stock (46,200 shares) in Crypoport, Inc. (“CYRX”), then a thinly traded
NASDAQ stock.
19. CYRX’s average daily trading volume over the prior 30 trading days
was approximately 18,000 shares, but on the day of the ATO its trading volume
spiked to 229,800 shares.
20. CYRX opened at $2.50 and closed at $2.52 on the ATO date but
reached an intra-day high of $2.85.
21. From 10:50 to 11:08 a.m. ET, four foreign brokerage accounts
controlled by Kushnarev, but maintained in the aliases “Vitaly Ershov” and

“Blazys Algimantas,” purchased CYRX for $2.51 to $2.60 per share.  During and
just after the ATO, between 11:56 a.m. and 12:41 p.m. ET, the “Ershov” and
“Algimantas” accounts sold the CYRX shares at prices between $2.74 and $2.80
per share, taking advantage of the price run-up caused by the forced purchases in
the hacked account and generating sales proceeds of approximately $78,700 and
net profits of approximately $7,000.
22. In another such example, on March 9, 2018, between 12:17 p.m. and
12:30 p.m. ET, a hacked account held at a Canadian retail brokerage was forced
to buy and sell thousands of shares of Evofem Biosciences Inc. (“EVFM”)
common stock, which was then trading on the NASDAQ exchange.
23. At 12:28 p.m. ET that day, while the ATO was still in progress,
Kushnarev, using an alias account in the name of “Ershov,” bought 4,089 shares
of EVFM at $6.75 per share.
24. Two minutes later, at 12:30 p.m. ET, Kushnarev sold those shares
out of the “Ershov” account at $6.95 per share for a profit of approximately $818,
with the sale, upon information and belief, executing directly against the hacked
account at the Canadian brokerage.
25. Starting around April 2019, the focus of Kushnarev’s scheme shifted
from thinly traded stocks to thinly traded options.
26. Using alias accounts held at U.S.-based brokerages, Kushnarev

would typically purchase out-of-the-money call and put options in NYSE and
NASDAQ-listed securities, and then offer these for sale at inflated prices.
27. Accounts subjected to ATOs would be made to bid on the options,
and the forced purchases would match with sales from Kushnarev’s alias
accounts.
28. For example, on May 8 and May 12, 2020, Kushnarev, using an alias
account opened in the name “Oskaras Korsunovas,” purchased out-of-the money
put options on shares of NYSE Arca-listed Global Robotics and Automation
Index ETF (“ROBO”) for $.05 to $.16 per 100 contracts.
29. On May 13, 2020, a retail account held at a large U.S. brokerage was
hacked and forced to buy 83 out-of-the-money put option contracts on ROBO
shares for $.30 per 100 contracts.
30. The forced purchase matched with the sale of 83 of the same options
from the “Korsunovas” account, generating $2,490 in sales proceeds and $1,530
in net profits.
31. In another example, on May 12, 13, and 14, 2021, Kushnarev, using
an alias account opened in the name “Ruben Salguero Romero,” purchased out-
of-the-money put options on shares of NASDAQ-listed First Business Financial
Services, Inc. (“FBIZ”) for $.20 to $.50 per 100 contracts.
32. On May 18, 2021, a retail account held at a large U.S. brokerage was

hacked and forced to purchase 78 out-of-the-money put option contracts on FBIZ
for $2 per 100 contracts.
33.The forced purchase matched with the sale of 78 of the same options
contracts from the “Salguero Romero” account, generating $15,600 in sa
les
proceeds and $12,680 in net profits.
34.The ATOs in which Kushnarev was involved, upon information and
belief, did not involve the compromise of any broker-dealer’s systems, but instead
resulted from security issues relating to the underlyi
ng retail accountholders, such
as passwords that had been stolen or compromised in other incidents.
35.Kushnarev maintained at least 18 U.S. and 20 foreign brokerage
accounts (with U.S. market access) under false names, which he used to trade into
the ATOs.
36.To establish these alias accounts, Kushnarev submitted account
opening applications containing false information, including false names, false
residential addressees, false citizenship and employment information, and other
false personal inform
ation.
37.Kushnarev submitted electronic images of false passports and other
false documents with many of the applications.  Kushnarev also opened numerous
bank accounts usi
ng false names, addresses, and other personal information to
deposit and transfer funds related to the scheme.

38. Known false identities under which Kushnarev maintained U.S. and
foreign brokerage and bank accounts to carry out the scheme include:
Blazys Algimantas
Ramunas Bukusinskas
Saulius Cvetkauskas
Olegs Dukalevs
Vitaly Ershov
Sergei Guliugin
Stanislav Iasiukevich
Ula Kairiene
Oskaras Korsunovas
Ilja Krumberg
Rimantas Labanauskas
Stanislav Lasiukevich
Edmundus Paskevicius,
Aesop Pozdyshev
Denis Pozdyshev
Ruben Salguero Romero
Donatas Sestokas
Arnestas Skruibys
Dainius Sopranas
Dmytro Tkach
Reiko Valling
Ceslovas Verbauskas
Mikhailo Zahorulko

39. The following table lists the false names used by Kushnarev in
opening the U.S. brokerage accounts, the claimed nationality of the fake identity,
the brokerage (with a letter substituted for its name), and the approximate date on
which the account was opened:
Kushnarev Alias Purported Nationality U.S. Brokerage
Approx. Date
Opened
Dukalevs, Olegs Malta Broker A 4/10/2019

Kairiene, Ula Lithuania Broker B 6/10/2019
Kairiene, Ula Czech Republic Broker C 2/6/2020
Korsunovas, Oskaras Poland Broker D 3/30/2020
Korsunovas, Oskaras Poland Broker E 2/21/2020
Korsunovas, Oskaras Poland Broker B 3/9/2020
Korsunovas, Oskaras Poland Broker C 3/17/2020
Korsunovas, Oskaras Poland Broker F 3/12/2020
Labanauskas, Rimantas Lithuania Broker G 10/25/2017
Labanauskas, Rimantas     Poland  Broker H 10/26/2019
Labanauskas, Rimantas Poland Broker F 11/1/2019
Salguero Romero,
Ruben
Spain                                          Broker                                          F                                          4/13/2021
Sestokas, Donatas Poland Broker B 10/11/2019
Sestokas, Donatas Poland Broker I 6/18/2020
Skruibys, Arnestas Poland Broker J 10/29/2019
Skruibys, Arnestas Poland Broker A 5/18/2020
Skruibys, Arnestas Poland Broker F 12/10/2019
Skruibys, Arnestas Poland Broker K 4/8/2020

FIRST CLAIM FOR RELIEF

Violations of Section 17(a)(1) of the Securities Act
[15 U.S.C. §§ 77q(a)(1)]

40.  The Commission realleges and incorporates by reference herein
paragraphs 1 through 39.
41. By reason of the conduct described above, Kushnarev, in the offer or

sale of securities, by the use of the means or instrumentalities of interstate commerce
or of the mails, directly or indirectly, employed devices, schemes, or artifices to
defraud purchasers or sellers of the securities.

42. While engaging in the course of conduct described above,
Kushnarev acted with scienter, that is, with an intent to deceive, manipulate, or
defraud, or with a severely reckless disregard for the truth.

43. By reason of the foregoing, Kushnarev violated, and unless enjoined
will continue to violate, Section 17(a)(1) of the Securities Act.
SECOND CLAIM FOR RELIEF

Violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act
[15 U.S.C. §§ 77q(a)(2) and 77q(a)(3)]

44. The Commission realleges and incorporates by reference herein
paragraphs 1 through 39.
45. By reason of the conduct described above, Kushnarev, in the offer or
sale of securities, by the use of the means or instrumentalities of interstate commerce
or of the mails, directly or indirectly,
a. obtained money and property by means of untrue statements
of material fact and omissions to state material facts necessary in order to
make the statements made, in light of the circumstances under which they
were made, not misleading; and

b.engaged in transactions, practices and courses of business
which would and di
d operate as a fraud and deceit upon the purchaser.
46.While engaging in the course of conduct described above, Kushnarev
acted at least negligently.
47.By reason of the foregoing, Kushnarev violated, and unless enjoined
will continue to violate, Sections 17(a)(2) and 17(a)(3) of the Securities Act.
THIRD CLAIM FOR RELIEF
Violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)]
and Rule 10b-5
 thereunder [17 C.F.R. § 240.10b-5]
48.The Commission realleges and incorporates by reference herein
paragraphs 1 through 39.
49.Kushnarev, in connection with the purchase or sale of securities, by
the use of the means and instrumentalities of interstate commerce and by the use
of the mails, directly and indire
ctly:
a.employed devices, schemes, an
d artifices to defraud;
b.made  untrue  statements  of  material  facts  and  omitted  to  state
material facts necessary in order to make the statements made, in light of t
he
circumstances under which they were made, not misleading; and
c.engaged in acts, practices, and
courses of business which would
and did operate as a fraud and deceit upon the Client and/or others,
all as more particularly described above.

50. By reason of the foregoing, defendant Kushnarev violated and, unless
enjoined, will continue to violate, Section 10(b) of the Exchange Act and Rule 10b-
5(a), (b) and (c) thereunder.
FOURTH CLAIM FOR RELIEF
Violations of Section 9(a)(2) of the Exchange Act
[15 U.S.C. § 78i(a)(2)]

51. The Commission realleges and incorporates by reference herein
paragraphs 1 through 39.
 52. Defendant Kushnarev, directly or indirectly, by the use of means or
instrumentalities of interstate commerce, or the mails or the facilities of a national
securities exchange, effected singly or in concert with others, a series of
transactions in a security or securities that created actual or apparent active
trading in such security or securities, and/or raised or depressed the price of such
security or securities, for the purpose of inducing the purchase or sale of such
security or securities by others.
53. By reason of the foregoing, Defendant Kushnarev violated, and
unless enjoined, will continue to violate Section 9(a)(2) of the Exchange Act.
PRAYERS FOR RELIEF
WHEREFORE, the Commission respectfully prays for:

I.

Findings of fact and conclusions of law pursuant to Rule 52 of the Federal
Rules of Civil Procedure, finding that the Defendant named herein committed the
violations alleged herein.
II.

A permanent injunction enjoining the Defendant from violating, directly or
indirectly, or aiding and abetting violations of, the laws and rules alleged to have
been violated in this complaint.
III.

An order requiring the disgorgement by the Defendant of all ill-gotten gains
or unjust enrichment with prejudgment interest, to effect the remedial purposes of
the federal securities laws.
IV.
An order pursuant to Section 20(d) of the Securities Act [15 U.S.C. §
77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)] imposing
civil penalties against the Defendant.

V.
Such other and further relief as this Court may
 deem just, equitable, and
appropriate in connection with the enforcement of the federal securities laws and
for the protection of investors.
JURY TRIAL DEMAND
The Commission hereby demands a jury trial as to all issues so triable.
This 22nd day o
f  September, 2025.
 /s/Robert K. Gordon
Robert K. Gordon
Senior Trial Counsel
Georgia Bar No. 302482
[email protected]
M. Graham Loomis
Supervisory Trial Counsel
Georgia Bar No. 457868
[email protected]
United States Securities and Exchange Commission
950 E. Paces Ferry Road NE, Suite 900
Atlanta, GA 30326
404-842-7600

UNITED STATES DISTRICT COURT 
NORTHERN DISTRICT OF GEORGIA 

ATLANTA DIVISION 
_________________________________________ 

| 
SECURITIES AND EXCHANGE  | 
COMMISSION, | 

| 
Plaintiff, | 

v. | CIVIL ACTION NO. 

     | 
 DMITRII YEVGENYEVICH KUSHNAREV, |          ___________________ 

(a/k/a Vitaly Ershov) | 
(a/k/a Sergei Guliugin) | 
(a/k/a Stanislav Iasiukevich)  | 
(a/k/a Ula Kairiene) |           COMPLAINT 
(a/k/a Oskaras Korsunovas)  | 
(a/k/a Ilja Krumberg) | 
(a/k/a Rimantas Labanauskas) | 
(a/k/a Stanislav Lasiukevich)  | 
(a/k/a Edmundus Paskevicius) | 
(a/k/a Aesop Pozdyshev) | 
(a/k/a Denis Pozdyshev)  | 
(a/k/a Ruben Salguero Romero) | 
(a/k/a Donatas Sestokas)  | 
(a/k/a Arnestas Skruibys) | 
(a/k/a Dainius Sopranas ) | 
(a/k/a Dmytro Tkach) | 
(a/k/a Reiko Valling) | 
(a/k/a Ceslovas Verbauskas)  | 
(a/k/a Mikhailo Zahorulko)  | 

        | 
Defendant.  | 

        | 
        | 
_________________________________________| 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 1 of 16



-2- 

 

 

Plaintiff Securities and Exchange Commission (“Commission”) alleges as 

follows: 

SUMMARY 
 

1. Beginning no later than March 2014, and continuing through at least 

May 2021 (the “Relevant Period”), Russian national Dmitrii Yevgenyevich 

Kushnarev (“Kushnarev”) participated in an “account takeover attack” (“ATO”) 

scheme that compromised hundreds of retail brokerage accounts in the United 

States and a smaller number in Canada.  These accounts were hacked and used—

without the owners’ knowledge or consent—to buy and sell thinly traded securities 

listed on the NYSE, NASDAQ, and OTC Markets.  These ATOs manipulated the 

price of the target securities, allowing Kushnarev to take advantage of artificial 

price increases by selling previously acquired shares into the market from dozens of 

brokerage accounts he maintained under false names.  ATOs by Kushnarev or 

unknown persons conspiring with him were also used to force hacked retail 

accounts to buy overpriced options on low-volume securities, which Kushnarev 

sold to the hacked accounts from one of his numerous alias accounts. 

2. During the Relevant Period, Kushnarev was involved in hundreds of 

ATOs of U.S. and Canadian retail brokerage accounts at no fewer than 10 brokerage 

firms in which hacked accounts were forced to purchase the securities of over 380 

different NYSE, NASDAQ, and OTC Market issuers.  Kushnarev generated 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 2 of 16



-3- 

 

 

approximately $31 million in gross proceeds and $1.5 million in net profits from the 

scheme.  

3. To avoid detection, Kushnarev made his profitable trades in dozens of 

U.S. and offshore brokerage accounts that he established using false identities.  To 

establish these alias accounts, Kushnarev submitted account opening applications 

containing false information, including false names, false residential addresses, false 

citizenship and employment information, and other false personal data.  Kushnarev 

submitted electronic images of false passports and other false documents with many 

of the applications.  During the Relevant Period, Kushnarev also used false names, 

false addresses, and other false personal information to open numerous bank 

accounts, which he used to deposit and transfer funds related to the scheme.   

4. As a result of the conduct alleged herein, Kushnarev violated, and 

unless restrained and enjoined will continue to violate, Section 17(a) of the 

Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)], Section 9(a) of the 

Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78i(a)] and 

Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 

thereunder [17 C.F.R. § 240.10b-5]. 

JURISDICTION AND VENUE 

5. The Commission brings this action pursuant to the authority 

conferred upon it by Sections 20(b) and 20(d) of the Securities Act [15 U.S.C. §§ 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 3 of 16



-4- 

 

 

77t(b) and 77t(d)] and Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)]. 

6. This Court has jurisdiction over this action pursuant to Section 22(a) 

of the Securities Act [15 U.S.C. § 77v(a)] and Section 27(a) of the Exchange Act 

[15 U.S.C. § 78aa(a)]. 

7. In connection with the transactions, acts, practices, and courses of 

business described in this Complaint, Kushnarev, directly and indirectly, made 

use of the means and instruments of transportation or communication in interstate 

commerce or the means and instrumentalities of interstate commerce, or the 

mails. 

8. Venue is proper in this district pursuant to 28 U.S.C. § 1391(c)(3) 

because Kushnarev is a foreign national residing outside the United States, and 

pursuant to 28 U.S.C. §1391(b)(2) because many of the hacked accounts were 

held at a broker-dealer which maintains its computer servers in the Northern 

District of Georgia, and because multiple retail account victims resided in the 

Northern District of Georgia at the time of the ATOs. 

DEFENDANT 

9. Dmitrii Yevgenyevich Kushnarev (“Kushnarev”), age 58, is a 

Russian national who, on information and belief, resides in Russia.  Kushnarev 

served a prison sentence in Russia from 2002-2004 for fraud. 

 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 4 of 16



-5- 

 

 

FACTS 

10. For his stock manipulation scheme, Kushnarev would acquire shares 

of thinly traded NYSE, NASDAQ, and OTC Market stocks in his alias brokerage 

accounts. 

11. Next, Kushnarev or unknown individuals conspiring with him would 

hack into U.S. and Canadian retail brokerage accounts and, posing as the 

accountholders, make large unauthorized purchases of the same thinly traded 

stocks that Kushnarev had just acquired in his alias accounts. 

12. These purchases typically stimulated trading activity in the market 

and caused the prices of the target stocks to temporarily increase.   

13. Kushnarev would profit from the market manipulation by “selling 

into” the hacks from his alias brokerage accounts. 

14. Alternatively, Kushnarev would engage in short selling of target 

stocks in coordination with the ATOs and cover his position when the stock 

prices normalized.   

15. At times, Kushnarev or unknown persons conspiring with him would 

facilitate his closing out of his short positions by launching ATOs to force the 

hacked accounts to sell target shares.  Kushnarev’s stock sales would often 

execute against both the forced purchases in the ATOs and purchases by other 

uninvolved market participants. 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 5 of 16



-6- 

 

 

16. As part of the scheme to manipulate share prices, Kushnarev would 

at times buy and sell shares of target stocks through his alias brokerage accounts 

in advance of the ATOs to increase trading volume and create the appearance of 

liquidity in the target stocks.   

17. Moreover, in ATOs designed to drive up share prices, Kushnarev or 

persons working with him would sometimes engage in unauthorized sales of 

target stocks—in addition to unauthorized purchases—to increase trading volume 

and create the appearance of liquidity. 

18. An example of Kushnarev “selling into” an ATO is as follows: On 

April 27, 2016, between 11:51 and 11:58 a.m. ET, a hacked account at a large 

U.S. retail brokerage was forced to purchase approximately $125,000 worth of 

stock (46,200 shares) in Crypoport, Inc. (“CYRX”), then a thinly traded 

NASDAQ stock.   

19. CYRX’s average daily trading volume over the prior 30 trading days 

was approximately 18,000 shares, but on the day of the ATO its trading volume 

spiked to 229,800 shares.   

20. CYRX opened at $2.50 and closed at $2.52 on the ATO date but 

reached an intra-day high of $2.85.   

21. From 10:50 to 11:08 a.m. ET, four foreign brokerage accounts 

controlled by Kushnarev, but maintained in the aliases “Vitaly Ershov” and 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 6 of 16



-7- 

 

 

“Blazys Algimantas,” purchased CYRX for $2.51 to $2.60 per share.  During and 

just after the ATO, between 11:56 a.m. and 12:41 p.m. ET, the “Ershov” and 

“Algimantas” accounts sold the CYRX shares at prices between $2.74 and $2.80 

per share, taking advantage of the price run-up caused by the forced purchases in 

the hacked account and generating sales proceeds of approximately $78,700 and 

net profits of approximately $7,000. 

22. In another such example, on March 9, 2018, between 12:17 p.m. and 

12:30 p.m. ET, a hacked account held at a Canadian retail brokerage was forced 

to buy and sell thousands of shares of Evofem Biosciences Inc. (“EVFM”) 

common stock, which was then trading on the NASDAQ exchange.   

23. At 12:28 p.m. ET that day, while the ATO was still in progress, 

Kushnarev, using an alias account in the name of “Ershov,” bought 4,089 shares 

of EVFM at $6.75 per share.   

24. Two minutes later, at 12:30 p.m. ET, Kushnarev sold those shares 

out of the “Ershov” account at $6.95 per share for a profit of approximately $818, 

with the sale, upon information and belief, executing directly against the hacked 

account at the Canadian brokerage. 

25. Starting around April 2019, the focus of Kushnarev’s scheme shifted 

from thinly traded stocks to thinly traded options.   

26. Using alias accounts held at U.S.-based brokerages, Kushnarev 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 7 of 16



-8- 

 

 

would typically purchase out-of-the-money call and put options in NYSE and 

NASDAQ-listed securities, and then offer these for sale at inflated prices. 

27. Accounts subjected to ATOs would be made to bid on the options, 

and the forced purchases would match with sales from Kushnarev’s alias 

accounts. 

28. For example, on May 8 and May 12, 2020, Kushnarev, using an alias 

account opened in the name “Oskaras Korsunovas,” purchased out-of-the money 

put options on shares of NYSE Arca-listed Global Robotics and Automation 

Index ETF (“ROBO”) for $.05 to $.16 per 100 contracts.   

29. On May 13, 2020, a retail account held at a large U.S. brokerage was 

hacked and forced to buy 83 out-of-the-money put option contracts on ROBO 

shares for $.30 per 100 contracts. 

30. The forced purchase matched with the sale of 83 of the same options 

from the “Korsunovas” account, generating $2,490 in sales proceeds and $1,530 

in net profits. 

31. In another example, on May 12, 13, and 14, 2021, Kushnarev, using 

an alias account opened in the name “Ruben Salguero Romero,” purchased out-

of-the-money put options on shares of NASDAQ-listed First Business Financial 

Services, Inc. (“FBIZ”) for $.20 to $.50 per 100 contracts.   

32. On May 18, 2021, a retail account held at a large U.S. brokerage was 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 8 of 16



-9-

hacked and forced to purchase 78 out-of-the-money put option contracts on FBIZ 

for $2 per 100 contracts. 

33. The forced purchase matched with the sale of 78 of the same options

contracts from the “Salguero Romero” account, generating $15,600 in sales 

proceeds and $12,680 in net profits. 

34. The ATOs in which Kushnarev was involved, upon information and

belief, did not involve the compromise of any broker-dealer’s systems, but instead 

resulted from security issues relating to the underlying retail accountholders, such 

as passwords that had been stolen or compromised in other incidents. 

35. Kushnarev maintained at least 18 U.S. and 20 foreign brokerage

accounts (with U.S. market access) under false names, which he used to trade into 

the ATOs. 

36. To establish these alias accounts, Kushnarev submitted account

opening applications containing false information, including false names, false 

residential addressees, false citizenship and employment information, and other 

false personal information. 

37. Kushnarev submitted electronic images of false passports and other

false documents with many of the applications.  Kushnarev also opened numerous 

bank accounts using false names, addresses, and other personal information to 

deposit and transfer funds related to the scheme. 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 9 of 16



-10- 

 

 

38. Known false identities under which Kushnarev maintained U.S. and 

foreign brokerage and bank accounts to carry out the scheme include:  

Blazys Algimantas 
Ramunas Bukusinskas 
Saulius Cvetkauskas 
Olegs Dukalevs 
Vitaly Ershov 
Sergei Guliugin  
Stanislav Iasiukevich  
Ula Kairiene 
Oskaras Korsunovas  
Ilja Krumberg 
Rimantas Labanauskas  
Stanislav Lasiukevich 
Edmundus Paskevicius,  
Aesop Pozdyshev 
Denis Pozdyshev 
Ruben Salguero Romero  
Donatas Sestokas  
Arnestas Skruibys 
Dainius Sopranas  
Dmytro Tkach 
Reiko Valling 
Ceslovas Verbauskas 
Mikhailo Zahorulko 
 

39. The following table lists the false names used by Kushnarev in 

opening the U.S. brokerage accounts, the claimed nationality of the fake identity, 

the brokerage (with a letter substituted for its name), and the approximate date on 

which the account was opened: 

Kushnarev Alias Purported Nationality U.S. Brokerage 
Approx. Date 

Opened 

Dukalevs, Olegs Malta Broker A 4/10/2019 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 10 of 16



-11- 

 

 

Kairiene, Ula Lithuania Broker B 6/10/2019 

Kairiene, Ula Czech Republic Broker C 2/6/2020 

Korsunovas, Oskaras Poland Broker D 3/30/2020 

Korsunovas, Oskaras Poland Broker E 2/21/2020 

Korsunovas, Oskaras Poland Broker B 3/9/2020 

Korsunovas, Oskaras Poland Broker C 3/17/2020 

Korsunovas, Oskaras Poland Broker F 3/12/2020 

Labanauskas, Rimantas Lithuania Broker G 10/25/2017 

Labanauskas, Rimantas Poland  Broker H 10/26/2019 

Labanauskas, Rimantas Poland Broker F 11/1/2019 

Salguero Romero, 
Ruben 

Spain Broker F 4/13/2021 

Sestokas, Donatas Poland Broker B 10/11/2019 

Sestokas, Donatas Poland Broker I 6/18/2020 

Skruibys, Arnestas Poland Broker J 10/29/2019 

Skruibys, Arnestas Poland Broker A 5/18/2020 

Skruibys, Arnestas Poland Broker F 12/10/2019 

Skruibys, Arnestas Poland Broker K 4/8/2020 

 
 

FIRST CLAIM FOR RELIEF 
 

Violations of Section 17(a)(1) of the Securities Act  
[15 U.S.C. §§ 77q(a)(1)] 

 
40.  The Commission realleges and incorporates by reference herein 

paragraphs 1 through 39.   

41. By reason of the conduct described above, Kushnarev, in the offer or 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 11 of 16



-12- 

 

 

sale of securities, by the use of the means or instrumentalities of interstate commerce 

or of the mails, directly or indirectly, employed devices, schemes, or artifices to 

defraud purchasers or sellers of the securities. 

42. While engaging in the course of conduct described above,  

Kushnarev acted with scienter, that is, with an intent to deceive, manipulate, or 

defraud, or with a severely reckless disregard for the truth. 

43. By reason of the foregoing, Kushnarev violated, and unless enjoined 

will continue to violate, Section 17(a)(1) of the Securities Act.   

SECOND CLAIM FOR RELIEF 
 

Violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act 
[15 U.S.C. §§ 77q(a)(2) and 77q(a)(3)] 

 
44. The Commission realleges and incorporates by reference herein 

paragraphs 1 through 39. 

45. By reason of the conduct described above, Kushnarev, in the offer or 

sale of securities, by the use of the means or instrumentalities of interstate commerce 

or of the mails, directly or indirectly, 

a. obtained money and property by means of untrue statements 

of material fact and omissions to state material facts necessary in order to 

make the statements made, in light of the circumstances under which they 

were made, not misleading; and 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 12 of 16



-13-

b. engaged in transactions, practices and courses of business

which would and did operate as a fraud and deceit upon the purchaser. 

46. While engaging in the course of conduct described above, Kushnarev

acted at least negligently. 

47. By reason of the foregoing, Kushnarev violated, and unless enjoined

will continue to violate, Sections 17(a)(2) and 17(a)(3) of the Securities Act. 

THIRD CLAIM FOR RELIEF 
Violations of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] 

and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5] 

48. The Commission realleges and incorporates by reference herein

paragraphs 1 through 39. 

49. Kushnarev, in connection with the purchase or sale of securities, by

the use of the means and instrumentalities of interstate commerce and by the use 

of the mails, directly and indirectly: 

a. employed devices, schemes, and artifices to defraud;

b. made untrue statements of material facts and omitted to state

material facts necessary in order to make the statements made, in light of the 

circumstances under which they were made, not misleading; and 

c. engaged in acts, practices, and courses of business which would

and did operate as a fraud and deceit upon the Client and/or others,  

all as more particularly described above. 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 13 of 16



-14- 

 

 

50. By reason of the foregoing, defendant Kushnarev violated and, unless 

enjoined, will continue to violate, Section 10(b) of the Exchange Act and Rule 10b-

5(a), (b) and (c) thereunder. 

FOURTH CLAIM FOR RELIEF 
Violations of Section 9(a)(2) of the Exchange Act  

[15 U.S.C. § 78i(a)(2)] 
 

51. The Commission realleges and incorporates by reference herein 

paragraphs 1 through 39. 

 52. Defendant Kushnarev, directly or indirectly, by the use of means or 

instrumentalities of interstate commerce, or the mails or the facilities of a national 

securities exchange, effected singly or in concert with others, a series of 

transactions in a security or securities that created actual or apparent active 

trading in such security or securities, and/or raised or depressed the price of such 

security or securities, for the purpose of inducing the purchase or sale of such 

security or securities by others. 

53. By reason of the foregoing, Defendant Kushnarev violated, and 

unless enjoined, will continue to violate Section 9(a)(2) of the Exchange Act.  

PRAYERS FOR RELIEF 

WHEREFORE, the Commission respectfully prays for: 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 14 of 16



-15- 

 

 

 
I. 

 
Findings of fact and conclusions of law pursuant to Rule 52 of the Federal 

Rules of Civil Procedure, finding that the Defendant named herein committed the 

violations alleged herein. 

II. 

 
A permanent injunction enjoining the Defendant from violating, directly or 

indirectly, or aiding and abetting violations of, the laws and rules alleged to have 

been violated in this complaint. 

III. 
 

An order requiring the disgorgement by the Defendant of all ill-gotten gains 

or unjust enrichment with prejudgment interest, to effect the remedial purposes of 

the federal securities laws. 

IV. 

An order pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 

77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)] imposing 

civil penalties against the Defendant. 

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 15 of 16



-16-

V. 

Such other and further relief as this Court may deem just, equitable, and 

appropriate in connection with the enforcement of the federal securities laws and 

for the protection of investors. 

JURY TRIAL DEMAND 

The Commission hereby demands a jury trial as to all issues so triable. 

This 22nd day of September, 2025. 

 /s/Robert K. Gordon 
Robert K. Gordon 
Senior Trial Counsel 
Georgia Bar No. 302482 
[email protected] 

M. Graham Loomis
Supervisory Trial Counsel
Georgia Bar No. 457868
[email protected]

United States Securities and Exchange Commission 
950 E. Paces Ferry Road NE, Suite 900 
Atlanta, GA 30326 
404-842-7600

Case 1:25-cv-05412-WMR     Document 1     Filed 09/22/25     Page 16 of 16