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Here’s a strange story. In October, Oleksandr Dorozhko hacked into IMS Health’s computers to get inside information which he used to load up on puts on the company’s stock. He made a killing, about $300,000 off a $41,000 investment.

The SEC tried to block him from taking his profits. A judge has ruled that what he did may be illegal but it’s not insider trading. Dorozhko may face more charges, but for now, he can keep his cash.

The SEC argues that deception was involved in hacking into the computer system, which was designed to allow access only to authorized persons.

That view drew scorn from Charles Ross, Dorozhko's lawyer, at the appellate court hearing Wednesday. "They want you to believe there is a deception of a computer," he said. "All there is is a high-tech lock pick."

Posted by edelfenbein at February 22, 2008 11:26 AM