Russian businessman gets 9 years in US prison for hack-and-trade scheme

Vladislav Klyushin, an owner of an information technology company with ties to the Russian government, is seen in an undated photograph attached to a US Department of Justice filing. (Reuters)
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Updated 07 September 2023
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Russian businessman gets 9 years in US prison for hack-and-trade scheme

  • “The defendant’s massive gains here came out of other investors’ pockets,” Assistant US Attorney Seth Kosto said during the sentencing hearing
  • Klyushin, 42, is one of the highest-profile Russians in US custody

BOSTON: A Russian businessman with ties to the Kremlin was sentenced on Thursday to nine years in a US prison after being convicted of participating in a $93 million insider-trading scheme involving hacked secret earnings information about multiple companies.
Vladislav Klyushin, the owner of a Moscow-based information technology company called M-13 that did work for the Russian government, was sentenced by US District Judge Patti Saris in Boston after a jury found him guilty in February.
Hackers from 2018 to 2020 viewed and downloaded yet-to-be-announced earnings reports for hundreds of companies including Tesla and Microsoft, which Klyushin and others used to trade before the news was public, according to prosecutors.
“The defendant’s massive gains here came out of other investors’ pockets,” Assistant US Attorney Seth Kosto said during the sentencing hearing. “That does real injury to American markets.”
Klyushin, 42, is one of the highest-profile Russians in US custody. And while his case predated the Russian invasion of Ukraine last year ordered by President Vladimir Putin, Klyushin’s connections to the Kremlin have long intrigued American authorities.
M-13 not only did work for Putin’s government but also employed Ivan Ermakov, a former Russian military intelligence officer wanted by the American government for his alleged involvement in hacking schemes aimed at interfering in the 2016 US presidential election, according to prosecutors.
Ermakov was charged along with Klyushin and three other Russian nationals with carrying out the hack-and-trade scheme. Only Klyushin has faced trial after he was apprehended in Switzerland during a ski trip in 2021 and extradited to the United States. Klyushin is expected to appeal his conviction.
During the hearing, Kosto urged a sentence of 14 years in prison, telling the judge that letting Klyushin return soon to Russia would be a “recipe for recidivism” and calling the defendant a “powerful person” with connections to the “highest echelons of Russian society.”
Maksim Nemtsev, Klyushin’s lawyer, said a lengthy sentence would rob his client of his ability to be with his children in Russia during their childhood.
“There’s no reason to believe he would risk the well-being of his family by committing crimes again,” Nemtsev said, as he asked for a three-year sentence that would take into account the 2-1/2 years he already has been in US custody.
Klyushin’s lawyers have argued there was no evidence he possessed inside information and knew of any hacking. Oliver Ciric, his attorney in Switzerland, said the real reason Klyushin was charged was his Russian government connections. Ciric has said US intelligence officials tried to recruit Klyushin in 2019 and that British intelligence did the same a year later.
Klyushin and his associates made $93 million trading stocks based on yet-to-be-announced information that hackers stole from publicly traded companies, according to prosecutors. The hackers broke into the networks of two firms that help publicly traded companies file reports with US securities regulators, Donnelley Financial Solutions and Toppan Merrill, prosecutors said.
The stolen financial information about those companies allowed Klyushin to turn a $2 million investment into nearly $21 million and the group as a whole to turn about $9 million into $93 million, prosecutors added.


UK schools see rise in white poppy interest to show Gaza solidarity

Updated 01 November 2024
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UK schools see rise in white poppy interest to show Gaza solidarity

  • Britons wear red poppies in November to remember fallen servicemen, women
  • White poppy makes distinction of also remembering civilian casualties of war

London: Schools in the UK are ordering large numbers of white poppies for children to show solidarity with the people of Gaza, the Daily Telegraph reported.

The UK celebrates Remembrance Sunday every November to reflect on the sacrifices made by men and women who have served the country, with red poppies traditionally worn to commemorate the dead and raise money for veterans and their families.

The white poppy has gained popularity in recent years as an alternative, having first been worn in 1933 by those wishing to promote peace rather than celebrate war, and to remember civilians as well as combatants.

The Peace Pledge Union, the organization that distributes white poppies, said it received increased orders from schools this year, with teachers citing the war in Gaza as a key reason for children wanting to wear them. Demand went up 27 percent since the start of the war in October last year, it added.

“It is heartening that a growing number of young people are turning to the white poppy, for the light it sheds on today’s conflicts,” said Geoff Tibbs, a project manager at the PPU.

“Many are alienated by the mainstream tradition of Remembrance Day, as it fails to acknowledge civilians and people of other nationalities affected by wars today.”

Schools that offer white poppies to pupils also tend to offer red ones, which are provided by a military charity, the Royal British Legion.

An RBL spokesman told the Telegraph: “The RBL defends the right to wear different poppies. The RBL’s red poppy honours all those who have sacrificed their lives to protect the freedoms we enjoy today; including the freedom to wear the poppy of your choice.”


Germans should leave Iran or risk being held hostage, says Berlin

Updated 01 November 2024
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Germans should leave Iran or risk being held hostage, says Berlin

BERLIN: Germany has long had a travel warning for Iran and asked nationals to leave because, as seen from the execution of a German-Iranian national, Tehran takes German citizens hostage, said a foreign ministry spokesperson in Berlin on Friday.
“We have long had a travel warning for Iran and a request to Germans in Iran to leave the country because we saw from the Jamshid Sharmahd case that Iran is taking German citizens hostage,” said the spokesperson at a government news conference.
“We want to spare other German citizens this fate.”


Filipinos honor their dead with flowers, food in All Saints’ Day rites

Updated 01 November 2024
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Filipinos honor their dead with flowers, food in All Saints’ Day rites

  • All Saints’ Day and All Souls’ Day are jointly referred to in the Philippines as Undas
  • Around 4 million Filipinos are expected to head to their native provinces this weekend

Manila: Millions of Filipinos flocked to cemeteries across the country on Friday, braving massive crowds, traffic, and extreme weather to honor their departed loved ones during the annual holidays dedicated to the dead.

The threats posed by a tropical storm in parts of the Philippines this week could not stop the throngs of people at seaports, airports, and bus terminals as they rushed from the main cities to their family towns and villages for Undas — the All Saints’ Day and All Souls’ Day celebrations.

In Manila, school and work stopped at noon on Oct. 31 to give people enough time to travel and avoid heavy traffic, as authorities expected around 4 million to head to their native provinces this weekend.

Preparations for the holiday usually begin days in advance, with families cleaning their ancestral graves, lighting candles, and placing flower bouquets on the tomb markers.

“We visit our dearly departed every chance we get. It’s just that on this day, everyone in the family is present,” said Maria Imelda Austria, a 51-year-old teacher for whom Undas was also an occasion to uphold her mother’s tradition.

“I make sure my parents get the nicest flower arrangements to keep my promise to them (to do so) when they were still alive. Also, we try to do what my mother used to do, that is pray the rosary and pray for the poor souls in purgatory.”

The tradition in the Catholic-majority nation is one of the many religious practices passed on by the Spanish who colonized the Philippines for over 300 years.

The Filipino word “Undas” stems from the Spanish phrase “Dia de los Todos Santos” or “All Saints’ Day.”

Food plays a significant role in the observance, with more traditional communities preparing their deceased relatives’ favorite dishes and serving them on their graves as an offering. Some households spread grains of uncooked rice on the floor to track the brief earthly visits of the departed, which are believed to occur during Undas. A change in the grain placement signifies that the spirits of their relatives have passed through.

For most, however, the holiday becomes an opportunity for family reunions, making it a highly anticipated event for Filipinos that usually calls for feasts.

“It is a happy occasion because we get to see our relatives and bond with them while enjoying food,” Anna Maria Batungbacal, a 46-year-old civil servant, told Arab News.

“But it can be sad as well when you remember those that aren’t with you anymore, especially when someone has just recently passed.”

For Criena House, the Undas reunions were like a “potluck,” with everyone bringing food.

“Everyone from different parts of the Philippines will come home. Sometimes they’ll be from other countries,” the 34-year-old actress-entrepreneur said.

“You just eat, you catch up with family, you can play music depending on where you are … It’s not rude to do that. It’s okay to smile and take pictures and pose with your family and the dead behind you.”

Undas is also an experience of learning about her community and its history — something she remembers from childhood, when her mother would take her around to the different grave sites of people she knew or who had a significant impact on their lives.

Her mother would point to a grave, exclaiming “that used to be my teacher over there, that used to be the ex-mayor over there,” she said.

The tradition is something House is keen to pass on to her Filipino-American husband and 2-year-old son.

“I had to explain to my husband that this is not just a day, it’s also kind of like a special week, like Thanksgiving or Christmas,” she said.

“He’s still adjusting to it, but for me it’s very fun because I’m seeing everyone, even if I don’t know the people around me. It’s like you’re getting to know your community.”


North Korean foreign minister arrives in Moscow for talks

Updated 01 November 2024
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North Korean foreign minister arrives in Moscow for talks

  • The visit comes after Pyongyang tested a new intercontinental ballistic missile this week
  • Washington says there are 10,000 North Korean troops in Russia

MOSCOW: North Korean Foreign Minister Choe Son Hui has arrived in Moscow and will hold strategic consultations with her Russian counterpart Sergei Lavrov on Friday, the Russian Foreign Ministry said.
Maria Zakharova, a spokeswoman for the ministry, in a post on her official Telegram channel, published photographs of Lavrov meeting Choe at a Moscow train station.
“Today, talks between the heads of Russia and the DPRK (Democratic People’s Republic of Korea) will be held in Moscow. Sergei Lavrov greeted his counterpart with a bouquet of flowers,” said Zakharova.
“The meeting began at the Yaroslavsky railway station (in Moscow), where a memorial plaque was unveiled to mark the occasion of Kim Il Sung’s 1949 visit to the USSR,” she said, referring to the founder of the DPRK.
The visit, Choe’s second in six weeks, comes after Pyongyang tested a new intercontinental ballistic missile this week and as Washington says there are 10,000 North Korean troops in Russia, including as many as 8,000 deployed in Russia’s Kursk region where Ukrainian troops have dug in.
US Secretary of State Antony Blinken said on Thursday that the United States expected the North Korean troops in Kursk region to enter the fight against Ukraine in the coming days.
Moscow has neither denied nor directly confirmed the presence of North Korean troops on its soil. President Vladimir Putin has said it is for Russia to decide how to implement a treaty he signed with North Korean leader Kim Jong Un in June that includes a mutual defense clause.


Shootout in western France wounds five: minister

Updated 01 November 2024
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Shootout in western France wounds five: minister

  • 15-year-old boy is between life and death after the gunbattle erupted in front of a restaurant overnight

Paris: A drug trafficking-related shooting has left a teenager and four others seriously wounded in the western French city of Poitiers, Interior Minister Bruno Retailleau said Friday.
The 15-year-old boy is between life and death after the gunbattle erupted in front of a restaurant overnight, Retailleau told BFMTV/RMC radio.