SEC v. Robert B. Westbrook, No. LR-26141, District of New Jersey (Sept. 27, 2024) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26141 / September 27, 2024 Securities and Exchange Commission v. Robert B. Westbrook, No. 2:24-cv-9497 (D.N.J. filed September 27, 2024) SEC Charges U.K. Citizen in Hacking and Trading Scheme Involving Five U.S. Companies The Securities and Exchange Commission today filed charges against U.K. citizen Robert B. Westbrook for hacking into the computer systems of five U.S. public companies to obtain material nonpublic information about their corporate earnings and using that information to make approximately $3.75 million in illicit profits by trading in advance of the companies' public earnings announcements. The SEC's complaint, filed on September 27, 2024 in the U.S. District Court for the District of New Jersey, alleges that, between approximately January 2019 and August 2020, Westbrook gained unauthorized access into the public companies' computer systems-prior to the companies' earnings announcements-by resetting passwords of senior level executives' accounts. As a result of these hacks, Westbrook deceptively obtained material nonpublic information that he used to trade in the securities of the five public companies prior to the release of at least 14 earnings announcements. The SEC's complaint charges Westbrook with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks a final judgment ordering Westbrook to pay civil penalties, ordering him to return his ill-gotten gains with prejudgment interest, and enjoining him from committing future violations of the charged provisions of the federal securities laws. In a parallel action, the U.S. Attorney's Office for the District of New Jersey today filed criminal charges against Westbrook. The SEC's investigation, which is ongoing, is being conducted by Alison R. Levine, Karolina Klyuchnikova, and Matthew Lambert of the New York Regional Office; David Austin, Patrick McCluskey, and Matthew Koop of the SEC Enforcement Division's Market Abuse Unit; IT Forensics staff member Kenneth Zavos; and Thomas Bedkowski of the SEC Enforcement's Division's Crypto Assets and Cyber Unit. The Division of Economic and Risk Analysis also provided substantial assistance. The case is being supervised by Mark R. Sylvester and Jorge Tenreiro of the Crypto Assets and Cyber Unit and Joseph Sansone of the Market Abuse Unit. The litigation will be led by Rusty Feldman and Ms. Klyuchnikova. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the United Kingdom Financial Conduct Authority.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26141 / September 27, 2024 Securities and Exchange Commission v. Robert B. Westbrook, No. 2:24-cv-9497 (D.N.J. filed September 27, 2024) SEC Charges U.K. Citizen in Hacking and Trading Scheme Involving Five U.S. Companies The Securities and Exchange Commission today filed charges against U.K. citizen Robert B. Westbrook for hacking into the computer systems of five U.S. public companies to obtain material nonpublic information about their corporate earnings and using that information to make approximately $3.75 million in illicit profits by trading in advance of the companies' public earnings announcements. The SEC's complaint, filed on September 27, 2024 in the U.S. District Court for the District of New Jersey, alleges that, between approximately January 2019 and August 2020, Westbrook gained unauthorized access into the public companies' computer systems-prior to the companies' earnings announcements-by resetting passwords of senior level executives' accounts. As a result of these hacks, Westbrook deceptively obtained material nonpublic information that he used to trade in the securities of the five public companies prior to the release of at least 14 earnings announcements. The SEC's complaint charges Westbrook with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks a final judgment ordering Westbrook to pay civil penalties, ordering him to return his ill-gotten gains with prejudgment interest, and enjoining him from committing future violations of the charged provisions of the federal securities laws. In a parallel action, the U.S. Attorney's Office for the District of New Jersey today filed criminal charges against Westbrook. The SEC's investigation, which is ongoing, is being conducted by Alison R. Levine, Karolina Klyuchnikova, and Matthew Lambert of the New York Regional Office; David Austin, Patrick McCluskey, and Matthew Koop of the SEC Enforcement Division's Market Abuse Unit; IT Forensics staff member Kenneth Zavos; and Thomas Bedkowski of the SEC Enforcement's Division's Crypto Assets and Cyber Unit. The Division of Economic and Risk Analysis also provided substantial assistance. The case is being supervised by Mark R. Sylvester and Jorge Tenreiro of the Crypto Assets and Cyber Unit and Joseph Sansone of the Market Abuse Unit. The litigation will be led by Rusty Feldman and Ms. Klyuchnikova. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the United Kingdom Financial Conduct Authority.