Four people have been arrested in Israel and Florida relating to a securities fraud scheme connected to the hacks of JPMorgan Chase & Co. and other financial institutions last year.
Law enforcement authorities in Israel arrested two men charged in the U.S. with running a multi-million dollar stock fraud scheme. However, a third suspect remains at large in Russia. In a related case in Florida, U.S. law enforcement arrested two men for operating an unlicensed bitcoin money-transfer business.
More on Tuesday’s arrests in JPMorgan hack
It turns out the individuals in these apparently separate cases are linked. One of the men charged in the securities-fraud scheme is a business associate and long-term friend of one of the two indicted in the Florida bitcoin operation.
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Of interest, the two men are identified in a previously unreported FBI memo that connects them to the investigation of the JPMorgan hack and to network break ins at Fidelity Investments and E*Trade Financial Corp.
The court filings specifying the charges against the men does not mention the JPMorgan hack, and the securities fraud and money-transfer schemes are not also directly linked to each other.
A Bloomberg source with knowledge of the investigation claimed that data stolen from JPMorgan, which included millions of e-mails and the names of customers, was actually used to promote small cap stocks with a gigantic spam campaign.