REFILE-Two charged in cyberfraud versus JPMorgan and others, plead innocent

People stroll by the JP Morgan & & Chase Co. structure in New York in an October 24, 2013 file image.

Reuters/Eric Thayer/Files

2 Israeli citizens pleaded not guilty on Thursday to managing an enormous computer hacking and scams scheme that included an attack versus JPMorgan Chase & & Co and produced hundreds of millions of dollars of prohibited revenue. Gery Shalon, 32, and Ziv Orenstein, 41, entered their pleas in Manhattan federal court before U.S. Magistrate Judge Nathaniel Fox. They were extradited from Israel this week. Shalon, Orenstein and a 3rd defendant, Joshua Samuel Aaron, all from Israel, were charged in November in a 23-count indictment with alleged crimes targeting 12 business, including 9 monetary services companies and media outlets such as The Wall Street Journal. Aaron has not been detained by U.S. authorities, district attorneys said, and his whereabouts were not right away clear.

District attorneys stated the plan dated back to 2007 and compromised more than 100 million people’s individual information. The alleged enterprise included pumping up stock prices with sham marketing e-mails, running online gambling establishments, running a prohibited bitcoin exchange and laundering cash through at least 75 shell companies and accounts around the globe. It included a massive attack on JPMorgan impacting 83 million consumers, the largest theft of customer information from a U.S. banks, authorities said.

A different indictment unveiled in Atlanta against Shalon, Aaron and an unnamed defendant stated the brokerages E * Trade Financial Corp and Scotttrade Inc were also targets, and personal info of more than 10 million customers was jeopardized. The counts in the New york city indictment consist of counts of computer system hacking, securities and wire fraud, identity theft, unlawful internet gambling and conspiring to commit money laundering, carrying possible jail sentences varying from two to Twenty Years. Not all counts were brought against all defendants.

The case is U.S. v. Shalon et al, U.S. District Court, Southern District of New york city, No. 15-cr-00333. (Clarifies headline to show cyberfraud included other companies.) (Reporting By Brendan Pierson in New york city; Editing by David Gregorio).

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