TheCorporateCounsel.net

The defendant in the criminal case arising out of last year’s hack of the SEC’s X account, Eric Council, Jr., entered a guilty plea in the case and was sentenced last Friday.  Prosecutors sought a two-year sentence, but Judge Amy Berman Jackson sentenced Council to only 14 months in federal prison. The U.S. Attorney’s announcement of the sentencing included the following comments from the DOJ, FBI and SEC:

“Council and his co-conspirators used sophisticated cyber means to compromise the SEC’s X account and posted a false announcement that distorted important financial markets,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Prosecuting those who seek to enrich themselves by threatening the integrity of digital assets through fraud is critical to protecting U.S. interests. The Department of Justice is committed to holding accountable individuals who commit cyber fraud and harm investors.”

“The deliberate takeover of a federal agency’s official communications platform was a calculated criminal act meant to deceive the public and manipulate financial markets,” said FBI Criminal Investigative Division Acting Assistant Director Darren Cox. “By spreading false information to influence the markets, Council attempted to erode public trust and exploit the financial system. Today’s sentencing makes clear that anyone who abuses public platforms for criminal gain will be held accountable.”

“Today’s sentencing exemplifies SEC OIG’s commitment to holding bad actors accountable and maintaining the integrity of SEC programs and operations through thorough investigative oversight,” said SEC OIG Special Agent in Charge Amanda James. “We are committed to working with the SEC and other law enforcement partners to help the SEC effectively and efficiently deliver on its critical mission.”

In addition to the prison time, Council was ordered to forfeit $50,000 and received an additional three years of supervised release with the condition that he not use computers to access the dark web or commit further identity fraud.

– John Jenkins