The US Securities and Exchange Commission today obtained an emergency asset freeze to halt what it claims was an Estonia-based “account intrusion” scheme that targeted online brokerage accounts in the United States.

In an emergency federal court action filed in the US District Court for the Southern District of New York, the commission charged Grand Logistic, S.A., a Belize corporation located in Tallinn, Estonia, and its owner, Evgeny Gashichev, a citizen of Russia, with conducting a fraudulent scheme involving the manipulation of the prices of numerous stocks by the unauthorized use of other people’s online brokerage accounts.

The commission alleges that, between Aug. 28, and Oct. 13, 2006, Grand Logistic and Gashichev made US$353,609 in unlawful profits by conducting at least 25 separate manipulations, involving the securities of at least 21 companies. None of these allegations have been proven.

Acting on the commission’s request, the court issued a temporary restraining order which, among other things, freezes the defendants’ assets and orders the repatriation of funds taken out of the US.

Linda Chatman Thomsen, director of the SEC’s Division of Enforcement, said, “Account intrusions combine securities fraud, identity theft and hacking. Our action today demonstrates, once again, that the commission will seek out and stop those who would prey on investors, in whatever manner.”

“Recently, the SEC has become aware of a dramatic increase in the number of intrusions into online brokerage accounts,” noted Daniel Hawke, district administrator of the commission’s Philadelphia District Office. “We have been working closely with other regulators and brokerage firms in an effort to ensure that online brokerage trading is safe and secure. Thus far, brokerage firms are typically covering the intrusion-related losses of their customers. Today’s action shows that the commission will aggressively pursue individuals and entities who seek to harm innocent investors through such conduct.”

Ethiopis Tafara, director of the SEC’s Office of International Affairs, commented, “We are working with our colleagues in Estonia and elsewhere around the world to heighten awareness of this new form of fraud and help ensure that those engaged in this illegal activity do not use international borders to escape detection and prosecution.”

The commission’s complaint seeks permanent injunctions against future violations, disgorgement of all ill-gotten gains, prejudgment interest, and civil penalties.