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Russian businessman convicted of hacking and insider trading.

February 15
in World
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On Tuesday, Vladislav Klyushin, a 42-year-old Russian millionaire with ties to the Kremlin, was convicted of wire fraud and securities fraud in a federal court in Boston. Klyushin had been accused of participating in an elaborate $90 million insider trading scheme using secret earnings information stolen from U.S. computer networks.

Klyushin, the owner of a Moscow-based information technology company associated with the Russian government, was arrested in 2021 in Switzerland. Four alleged co-conspirators, including a Russian military intelligence officer charged with meddling in the 2016 presidential election, remain at large.

According to prosecutors, hackers stole usernames and passwords for two U.S.-based vendors used by publicly traded companies to make filings through the Securities and Exchange Commission. They then broke into the vendors’ computer systems to get financial disclosures for hundreds of companies, including Microsoft, Tesla, and Kohls, Ulta Beauty and Sketchers, before they were filed to the SEC and became public.

Klyushin’s attorney denied his client was involved in the scheme and told jurors in his opening statement that the government’s case was filled with “gaping holes” and “inferences.”

Massachusetts U.S. Attorney Rachael Rollins said in an email statement, “The jury saw Mr. Klyushin for exactly what he is—a cybercriminal and a cheat. He repeatedly gamed the system and finally got caught. Now he is a convicted felon.” Klyushin and his attorney have stated their intention to appeal the verdict.

By Alanna Durkin Richer

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