Hackers Beating the Market:
The SEC is suing Estonian investment bank Lohmus Haavel & Viisemann of Tallinn, Estonia, and two employees, for gaining access to more than 360 press releases on U.S. companies — before public release — from distribution service Business Wire.
Filed in the Southern District of New York, the SEC's lawsuit says the Estonian firm and two employees, Oliver Peek and Kristjan Lepik, made more than $7.8 million from trades based on the information in releases dating back to January 2005.
Business Wire President Cathy Tamraz says the SEC's suit is unfounded, according to an Associated Press report.
SEC Halts Fraudster, Again:
The SEC has obtained a temporary restraining order, asset freeze and other relief to halt a real estate scam run by a San Clemente, Calif., man who raised $10 million from over 100 investors.
Edward Showalter, using two companies he controls, High Park Investment Group and Harbor Financial Investment Group, solicited minimum investments of $50,000 from investors for the purpose of buying and refurbishing “distressed” property. Instead, Showalter and his companies commingled investor funds and used them for their own gain. This is Showalter's second run-in with the SEC — he was sued by the regulator back in 1988 for a similar fraud.