The two Israeli men charged with masterminding a massive breach of JPMorgan Chase (among other FIs) that led to the loss of hundreds of millions of dollars have officially entered pleas of not guilty in the case.
Gery Shalon, 32, and Ziv Orenstein, 41, both submitted pleas in Manhattan federal court before U.S. Magistrate Judge Nathaniel Fox after being extradited from Israel earlier this week. A third defendant — Joshua Samuel Aaron — has already been indicted for the alleged crime of targeting 12 companies. As of yet, Aaron has not been arrested, and given that his present whereabouts are unknown, the most likely explanation for that would be they can’t locate him to bring him into custody.
The alleged scheme at issue in the case is old — dating back to 2007 — and is related to the theft of over 100 million customers’ personal information. To raise funds, the allegedly illegal enterprise pumped stock prices with false promotional emails, ran online casinos, operated an illegal bitcoin exchange and laundered money through a collection of shell companies that was at least 75 firms deep.
But wait, there’s more.
Highlight crimes also include an attack on JPMC that heisted the personal data of 83 million customers — the largest ever theft of its kind from a U.S. FI.
The three musketeers — plus an unnamed fourth defendant — are also accused of targeting E*Trade Financial Corp. and Scotttrade and lifting more than 10 million customers’ files.
So, criminal? Yes. But you can’t argue they’re lazy.
The three men now face a laundry list of an indictment that includes counts of computer hacking, securities and wire fraud, identity theft, illegal internet gambling and conspiring to commit money laundering, carrying possible prison sentences ranging from two to 20 years.
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