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Ukrainian Pleads Not Guilty In $100 Million Insider-Trading Case

A Ukrainian man charged for his alleged role in a $100 million insider-trading scheme that employed a Ukraine-based hacking network has pleaded not guilty.

Arkadiy Dubovoy, who spoke Russian and used an interpreter, appeared before a federal court in New Jersey on September 2. A November 4 trial date was set.

Dubovoy's son, Igor, is expected to enter a plea on related charges on September 14. He was unable to make a $3 million bond set last week.

The Dubovoys were among 32 defendants, including traders and hackers, charged last month by U.S. authorities over an alleged scheme to steal sensitive information from corporate news releases and profit by trading on that information before it was publicized.

The Dubovoys allegedly traded on information gleaned by hackers in Ukraine from their home near Atlanta, Georgia. Four of their co-defendents remain at large in Ukraine.

Another trader, Morgan Stanley alumnus Vitaly Korchevsky, an emigre who was born in Kazakhstan and became a Baptist pastor in Pennsylvania, was ordered released on $2 million bond on August 26 after 80 parishioners vouched for him.

Based on reporting by Reuters and Bloomberg News

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