Delaware Co. man arrested in multi-million dollar hacking scheme

GLEN MILLS, Pa. (WPVI) -- A Delaware County money manager is accused in a multi-million dollar international insider trading scheme.

Authorities say Vitaly Korchevsky and eight others hacked into fortune 100 companies and stole stock information before it was released to the public.

Korchevsky, 50, is a Russian immigrant and resident of Glen Mills. Federal prosecutors say he is also a major player in an international global cybercrime and insider trading ring that that has netted over $100 million.

The FBI arrested Korchevsky at his mansion on Tuesday and charged him and his alleged cohorts with hacking some of the business world's largest newswire services and stealing news releases before they were made public, then trading on the information - often in a gap lasting only minutes before the news it contained was widely released.

United States Attorney Paul Fishman says, "Over five years those hackers then posted the releases on private overseas servers and made them available to those who were experts in trading on that information ahead of the public announcements."

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Prosecutors say the fraud conspiracy included companies in Russia, France, Malta and Cyprus.

Korchevsky ran his own hedge fund from his gated home in Glen Mills.

There was no answer when Action News visited his home today, even though Korchevsky has been released on $100,000 bond.

There was also no answer at the Slavic Evangelical Baptist Church where Korchevsky, now a U.S. citizen, is the chief pastor. However, a number of his church members have posted a to Facebook page proclaiming their support for the embattled preacher and businessman.

Korchevsky is due back in federal court in Philadelphia on Friday.