US seeks extradition of two Israelis suspected in securities fraud scam

Israel Police have arrested two Israeli citizens suspected of involvement in a securities fraud scam, following a joint investigation led by the FBI, the police cleared for publication Tuesday night.

Israel Police first reported the arrests in a message sent out to reporters on Tuesday, along with a stipulation that a gag order currently on the case prevents the publication of any details or the existence of the gag order. That restriction was partially lifted later Tuesday night after Bloomberg ran an article about the arrests.

The Bloomberg report said that the arrests were part of a months-long investigation of a group of friends who met in college in Florida and are tied to the JP Morgan hack in 2011 and 2012, with suspects in Israel accused of security fraud for inflating the value of low-volume stocks.

Source: http://www.jpost.com/Israel-News/Two-Israelis-arrested-in-cyber-hack-case-on-US-stock-market-409745

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