SEC v. Idris D. Mustapha, No. LR-23592, Southern District of New York (July 7, 2016) — Press Release
raw: Idris D. Mustapha
Idris D. Mustapha, No. LR-23592 (S.D.N.Y. July 7, 2016)
Idris D. Mustapha, a UK-based trader, allegedly hacked into US customers' brokerage accounts, making unauthorized trades to profit $68,000, and was charged with securities fraud, with a preliminary injunction freezing over $100,000 in assets.
Idris D. Mustapha, a UK-based trader, allegedly hacked into US customers' brokerage accounts in April and May 2016, executing unauthorized stock trades to profit at least $68,000. The scheme caused losses of over $289,000 to the victims. Mustapha was charged with violating the Securities Exchange Act of 1934 and the Securities Act of 1933, with a preliminary injunction freezing over $100,000 in his assets.
Idris D. Mustapha, a UK-based trader, allegedly hacked into US customers' brokerage accounts in April and May 2016, executing unauthorized stock trades to profit from the scheme. Mustapha's alleged fraud resulted in at least $68,000 in profits for himself and over $289,000 in losses for the victims. The SEC charged him with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder, as well as Section 17(a)(1) and (3) of the Securities Act of 1933. A federal court granted a preliminary injunction and froze over $100,000 in Mustapha's assets. The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. Mustapha's scheme involved rapidly purchasing shares at increasing prices and then profiting by selling his own shares of the stock in his brokerage account. The SEC's complaint and emergency application were filed on June 22, 2016, in federal court in New York.
Extracted insights
- $289K $289,000 $100K–$1M
- $100K $100,000 $100K–$1M
- $68K $68,000 $10K–$100K
- person Idris D. Mustapha
- location New York
- agency Securities and Exchange Commission
- location United Kingdom
- U.S. Securities and Exchange Commission obtained preliminary injunction against Idris Dayo Mustapha for account intrusion scheme
- federal court granted motion for preliminary injunction and continued freeze of over $100,000 in assets
- SEC filed complaint against Idris Dayo Mustapha for account intrusion scheme
- SEC filed emergency application against Idris Dayo Mustapha for account intrusion scheme
- U.S. Securities and Exchange Commission obtained preliminary injunction against Idris Dayo Mustapha for account intrusion scheme
- federal court granted motion for preliminary injunction and freeze of over $100,000 in assets
- SEC filed complaint against Idris Dayo Mustapha for account intrusion scheme
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23592 / July 7, 2016 Securities and Exchange Commission v. Idris D. Mustapha, Civil Action No. 16-cv-4805 (S.D.N.Y.) SEC Obtains Preliminary Injunction Against Uk-Based Trader for Account Intrusion Scheme The Securities and Exchange Commission announced that on July 5, 2016, a federal court granted the SEC's motion for a preliminary injunction and continued the freeze of over $100,000 in assets in brokerage and bank accounts in the name of a United Kingdom resident, Idris Dayo Mustapha. The SEC's complaint and emergency application, filed on June 22, 2016 in federal court in New York, allege that in April and May, Mustapha hacked into numerous accounts of U.S. customers of broker-dealers in and outside the U.S. The complaint alleges that Mustapha placed stock trades without the customers' knowledge and then traded in the same stocks through his own brokerage account. In one case, Mustapha allegedly hacked into a brokerage account and rapidly purchased shares at increasing prices and then profited by selling his own shares of the stock in his brokerage account. According to the complaint, Mustapha's scheme made at least $68,000 in profits and caused losses in the victims' accounts of at least $289,000. The SEC's complaint charges Mustapha with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder, as well as Section 17(a)(1) and (3) of the Securities Act of 1933. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. For further information, see Litigation Release No. 23580.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23592 / July 7, 2016 Securities and Exchange Commission v. Idris D. Mustapha, Civil Action No. 16-cv-4805 (S.D.N.Y.) SEC Obtains Preliminary Injunction Against Uk-Based Trader for Account Intrusion Scheme The Securities and Exchange Commission announced that on July 5, 2016, a federal court granted the SEC's motion for a preliminary injunction and continued the freeze of over $100,000 in assets in brokerage and bank accounts in the name of a United Kingdom resident, Idris Dayo Mustapha. The SEC's complaint and emergency application, filed on June 22, 2016 in federal court in New York, allege that in April and May, Mustapha hacked into numerous accounts of U.S. customers of broker-dealers in and outside the U.S. The complaint alleges that Mustapha placed stock trades without the customers' knowledge and then traded in the same stocks through his own brokerage account. In one case, Mustapha allegedly hacked into a brokerage account and rapidly purchased shares at increasing prices and then profited by selling his own shares of the stock in his brokerage account. According to the complaint, Mustapha's scheme made at least $68,000 in profits and caused losses in the victims' accounts of at least $289,000. The SEC's complaint charges Mustapha with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder, as well as Section 17(a)(1) and (3) of the Securities Act of 1933. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties. For further information, see Litigation Release No. 23580.