Glaring Omission of Any Gery Shalon Mention
Perhaps the most glaring oversight by the SEC, which has yet to be covered in this report, is the involvement of Gery Shalon.
Who is Gery Shalon?
Gery Shalon is an Israeli citizen and career criminal whose involvement in money laundering, fraud, and financial crime, specifically in relation to binary and forex scams, is extensive.
It is estimated that Gery Shalon has successfully defrauded investors around planet earth out of hundreds of millions of dollars (this is not a hyperbolic statement and the claim stems the DOJ).
2014 JP Morgan Chase Data Breach
In 2014, over 80 million financial records were extracted from JP Morgan in a theft that was dubbed to be the largest of its kind in U.S. history.
Shortly after this hack, there was a major coordinated international effort to find those responsible.
The result of these efforts led to the apprehension of three individuals named:
- Ziv Orenstein
- Joshua Samuel Aaron
- Gery Shalon
Outlining Criminal Charges Gery Shalon Faced for His Role in the Hacking of JP Morgan
The press release by the U.S. Southern District of New York detailing the arrest of Gery Shalon and other for their role in the hack of JP Morgan and other major U.S. financial institutions can be found below:
The announcement, which was published on the U.S. Department of Justice’s website on December 14th, 2016, goes into significant detail about Gery Shalon’s role in these hacks.
Gery Shalon was actually arrested in Israel and extradited to the United States to face 22 counts of money laundering/computer hacking/securities fraud in federal court.
Below are the charges as published by the New York SDNY:
In total, it appears Gery Shalon and the two named co-conspirators were facing a maximum of 237 years in prison.
The following federal agencies were involved in the apprehension of Gery Shalon and his co-defendants:
- Federal Bureau of Investigation (FBI)
- United States Secret Service
- Office of the State Attorney of the Israel Ministry of Justice’s Department of INternational Affairs
- Israel National Police
- Israel’s National Police Cyber Unit
- Securities and Exchange Commission (SEC)
- Immigration and Customs Enforcement (ICE)
- Homeland Security
- Financial Industry Regulatory Authority (FinRA)
- National Credit Union Administration
- Department of Justice (Office of International Affairs)
Reviewing the Actual Federal Indictment for Gery Shalon
Below is a screenshot from the unsealed federal indictment by the U.S. Southern District of New York (SDNY):
The indictment is linked below in an embedded pdf as well for those looking to read more about Gery’s prolific criminality in addition to his role in one of the biggest financial heists to ever impact a U.S. financial institution :
Some relevant background information regarding Gery Shalon can be found below:
Cliff Notes From the Above Screenshots
- Gery Shalon and his associates (plus some unnamed ones) primarily benefited through stock fraud and manipulation.
- Specifically, Gery Shalon’s expertise was in marketing and pushing a narrative on to the market (which was usually false) in order to artificially raise the price of a target investment, if only temporarily.
- Gery would combine the method outlined in #2 with actual price manipulation via buy and sell orders on the market, which were effective in moving the price.
- Often times, Gery would craft a narrative that complemented his price manipulation efforts. For instance, while he was manipulating the price of a target stock/asset on the market, he would also push a narrative to millions of investors that would point to the asset’s recent price bump (which he manipulated) as evidence of true, increased organic demand.
While the method of market manipulation outlined above may seem relatively simple on its face, Gery Shalon and his co-conspirators in the indictment executed this scheme in a sophisticated manner that essentially guaranteed that they would perpetually profit from their efforts.
Specifically, the indictment states that Gery and his affiliates made millions of dollars from this scheme on a regular basis…
Keep in mind that all of the above information just covers Gery Shalon’s background.
The actual issue at hand for Gery Shalon in this indictment is his role in the largest targeted attack on a financial institution in U.S. history.
Detailed information about the steps taken by law enforcement authorities to track down Gery Shalon and his co-conspirators’ involvement in these attacks is still under seal in federal court.
Other Crimes Committed by Gery Shalon That the SDNY Federal Indictment Outlines
On page 11, under the heading ‘Overt Acts’, the SDNY asserts that Gery Shalon created a shell company in Arizona under a fake alias which was created with a forged passport:
On page 20, the SDNY outlines identity theft — stating that Gery Shalon and one of his co-conspirators extracted and used a stolen Social Security Number:
Shalon was also accused of laundering millions of dollars in and out of the United States: