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by Mike Caswell

The Supreme Court of the United States has upheld the conviction of Vitaly Korchevsky, a Pennsylvania fund manager and pastor who made $15-million in a newswire hacking fraud. (All figures are in U.S. dollars.) Prosecutors said that Mr. Korchevsky was the "linchpin" of a scheme in which hackers infiltrated three newswire services, including Toronto's Marketwired LP. He and others traded on hundreds of unpublished news releases, generating tens of millions in gains, the government claimed.

The loss for Mr. Korchevsky, 56, is contained in a ruling the Supreme Court released on Monday, Jan. 10. The court has simply denied Mr. Korchevsky's appeal. As is customary, it did not provide any reasons.

When he filed the appeal, Mr. Korchevsky complained that the government conducted his trial unfairly, presenting evidence that was not linked to the charges. In particular, he said that the charges as set out in his indictment arose from trades in 91 companies, but at trial prosecutors largely ignored those companies and instead presented evidence of hundreds of trades in other stocks. Moreover, there was no evidence that a single investor lost money as a result of his activity, he contended.

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