SEC v. Dubovoy, et al. (hack to trade, 2016)

Settled

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In November 2016 the SEC announced settlements, subject to court approval, with Russian traders Alexander Fedoseev and Roman Lavlinskiy in the Dubovoy hacked-news-release case. The SEC alleged they made about $1.1 million trading on press releases stolen from two newswires; they agreed to injunctions and to pay more than $1.22 million jointly and severally in disgorgement.

The record

What was ordered

Civil penalty

—

Disgorgement

$1.2m

Prejudgment interest

—

Total relief

$1.2m

Alleged gain

$1.1m

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced these settlements on November 2, 2016 as litigation release LR-23682, in SEC v. Dubovoy, et al., civil action 2:15-cv-06076 in the District of New Jersey. The release concerns two defendants of the roughly 34 in the case, Alexander Fedoseev and Roman Lavlinskiy (2 individuals, 0 entities), whose settlement agreements were subject to court approval. Earlier versions of this record listed the defendant as "Dubovoy, et al." and recorded no money.

The amended complaint alleges that Fedoseev and Lavlinskiy together made about $1.1 million buying and selling stock between 2012 and 2014 on the basis of press releases hacked from two newswire services. Without admitting or denying the allegations, they agreed to be permanently enjoined from violating Section 10(b), Rule 10b-5 and Section 17(a) and to pay, jointly and severally, disgorgement of more than $1.22 million, including funds already frozen. The record stores $1,220,000, the stated floor.

The release adds that the SEC had by then obtained settlements from 13 defendants totalling over $53 million; that cumulative figure and the other defendants' settlements are not attributed to this record.

For the regulator's own account of the facts, read the primary document linked above.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Hack to trade — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2016-11-02 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 20, 2026. submit a correction.