SEC Sues UK-Based Trader for Account Intrusion Scheme
UK resident Idris Dayo Mustapha hacked into U.S. investors' brokerage accounts to execute unauthorized trades and profit from matching trades in his own account, generating at least $68,000 in illicit gains and $289,000 in victim losses, leading the SEC to freeze over $100,000 of his assets and seek permanent injunctions, disgorgement, and penalties.
The SEC charged UK resident Idris Dayo Mustapha with violating federal antifraud securities laws by hacking into U.S. investors' brokerage accounts during April and May to execute unauthorized stock trades. He then profited by trading the same stocks in his own account, resulting in at least $68,000 in illicit gains and causing over $289,000 in losses to victims. The SEC obtained an emergency court order freezing more than $100,000 of his assets, barring evidence destruction, and is seeking permanent injunctions, disgorgement of ill-gotten gains with interest, and financial penalties.
The SEC charged UK resident Idris Dayo Mustapha with hacking into the online brokerage accounts of U.S. investors during April and May to execute unauthorized stock trades without their knowledge. Mustapha allegedly profited by purchasing the same stocks in his own brokerage account after observing the manipulated trades, effectively front-running his victims’ transactions. His scheme generated at least $68,000 in illicit profits while inflicting over $289,000 in losses on the compromised accounts. In response, the SEC secured an emergency court order freezing more than $100,000 of Mustapha’s assets and prohibiting him from destroying evidence. The agency alleges violations of federal antifraud provisions and is seeking permanent injunctions, disgorgement of ill-gotten gains with interest, and financial penalties. The investigation was conducted jointly by the SEC’s Market Abuse Unit and Boston Regional Office, with analytical support from the Center for Risk and Quantitative Analytics and the Division of Economic and Risk Analysis. The investigation remains ongoing as authorities continue to pursue additional evidence and potential accomplices.
Exhibits & Attached Documents (1)
Extracted insights
- $289K $289,000 $100K–$1M
- $100K $100,000 $100K–$1M
- $68K $68,000 $10K–$100K
- court a complaint in u.s. district court in the southern district of new york
- person Eric Forni
- person Idris Dayo Mustapha
- person Mark Albers
- person Michele Perillo
- person Robert Cohen
- agency Securities and Exchange Commission
- person Susan Cooke Anderson
- Securities and Exchange Commission Obtained Emergency court order
- Securities and Exchange Commission Announced It has obtained an emergency court order
- Securities and Exchange Commission Filed A complaint in U.S. District Court in the Southern District of New York
- Idris Dayo Mustapha Hacked into Numerous accounts of U.S. customers of broker-dealers in and outside the U.S.
- Idris Dayo Mustapha Placed Stock trades without the customers’ knowledge
- Idris Dayo Mustapha Traded in The same stocks through his own brokerage account
- Idris Dayo Mustapha Hacked into A brokerage account and rapidly purchased shares at increasing prices
- Idris Dayo Mustapha Profited by selling His own shares of the stock in his brokerage account
- Idris Dayo Mustapha’s scheme Made At least $68,000 profits for himself
- Idris Dayo Mustapha’s scheme Caused losses Of at least $289,000 in the victims’ accounts
- Robert Cohen Said We will swiftly track down hackers who prey on investors as we allege Mustapha did, no matter where they are operating from and no matter how sophisticated their technology
- Securities and Exchange Commission Obtained An emergency court order that freezes more than $100,000 in Mustapha’s assets
- Securities and Exchange Commission Prohibits Mustapha from destroying evidence
- Securities and Exchange Commission Alleges Mustapha violated the antifraud provisions of federal securities laws and a related SEC antifraud rule
- Securities and Exchange Commission Is seeking Permanent injunctions, return of allegedly ill-gotten gains with interest, and financial penalties
- Securities and Exchange Commission’s Market Abuse Unit Conducted The investigation, which is continuing
- Eric Forni Investigated The matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis
- Susan Cooke Anderson Investigated The matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis
- Mark Albers Investigated The matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis
- Michele Perillo Investigated The matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis
The Securities and Exchange Commission today announced it has obtained an emergency court order to freeze the assets of a United Kingdom resident charged with intruding into the online brokerage accounts of U.S. investors to make unauthorized stock trades that allowed him to profit on trades in his own account. In a complaint filed in U.S. District Court in the Southern District of New York, the SEC alleges that in April and May, Idris Dayo Mustapha hacked into numerous accounts of U.S. customers of broker-dealers in and outside the U.S. The complaint alleges that Mustapha placed stock trades without the customers’ knowledge and then traded in the same stocks through his own brokerage account. In one case, Mustapha allegedly hacked into a brokerage account and rapidly purchased shares at increasing prices and then profited by selling his own shares of the stock in his brokerage account. According to the complaint, Mustapha’s scheme made at least $68,000 profits for himself and caused losses in the victims’ accounts of at least $289,000. “We will swiftly track down hackers who prey on investors as we allege Mustapha did, no matter where they are operating from and no matter how sophisticated their technology,” said Robert Cohen, Co-Chief of the SEC Enforcement Division's Market Abuse Unit. The SEC obtained an emergency court order today that freezes more than $100,000 in Mustapha’s assets and prohibits Mustapha from destroying evidence. The SEC alleges that Mustapha violated the antifraud provisions of federal securities laws and a related SEC antifraud rule. In addition to the emergency relief, the SEC is seeking permanent injunctions, return of allegedly ill-gotten gains with interest, and financial penalties. The SEC's Market Abuse Unit and its Boston Regional Office jointly conducted the investigation, which is continuing. Eric Forni, Susan Cooke Anderson, Mark Albers, and Michele Perillo investigated the matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis.
The Securities and Exchange Commission today announced it has obtained an emergency court order to freeze the assets of a United Kingdom resident charged with intruding into the online brokerage accounts of U.S. investors to make unauthorized stock trades that allowed him to profit on trades in his own account. In a complaint filed in U.S. District Court in the Southern District of New York, the SEC alleges that in April and May, Idris Dayo Mustapha hacked into numerous accounts of U.S. customers of broker-dealers in and outside the U.S. The complaint alleges that Mustapha placed stock trades without the customers’ knowledge and then traded in the same stocks through his own brokerage account. In one case, Mustapha allegedly hacked into a brokerage account and rapidly purchased shares at increasing prices and then profited by selling his own shares of the stock in his brokerage account. According to the complaint, Mustapha’s scheme made at least $68,000 profits for himself and caused losses in the victims’ accounts of at least $289,000. “We will swiftly track down hackers who prey on investors as we allege Mustapha did, no matter where they are operating from and no matter how sophisticated their technology,” said Robert Cohen, Co-Chief of the SEC Enforcement Division's Market Abuse Unit. The SEC obtained an emergency court order today that freezes more than $100,000 in Mustapha’s assets and prohibits Mustapha from destroying evidence. The SEC alleges that Mustapha violated the antifraud provisions of federal securities laws and a related SEC antifraud rule. In addition to the emergency relief, the SEC is seeking permanent injunctions, return of allegedly ill-gotten gains with interest, and financial penalties. The SEC's Market Abuse Unit and its Boston Regional Office jointly conducted the investigation, which is continuing. Eric Forni, Susan Cooke Anderson, Mark Albers, and Michele Perillo investigated the matter, with the assistance of Alex Lefferts of the Enforcement Division’s Center for Risk and Quantitative Analytics and Stuart Jackson of the Division of Economic and Risk Analysis.