WSJ – Former Equifax Executive Charged With Insider Trading

And do any of us believe senior exec’s didn’t know of the breach prior to selling their stock? NOT!

  • Jun Ying, who had been chief information officer of Equifax’s U.S. Information Solutions unit, former technology executive at Equifax Inc. was indicted on criminal insider-trading over claims he sold shares in the company after finding out about its large data breach last year, days before it was made public
    • exercised all of his vested Equifax stock options and sold the resulting shares garnering more than $950,000 in proceeds 10 days before Equifax publicly disclosed the breach
  • personal information of 147.9 million U.S. consumers was compromised, including names, dates of birth, addresses and Social Security numbers
  •  aren’t related to earlier concerns that some top Equifax executives had sold shares soon after Equifax first discovered suspicious activity
  • He  wasn’t among the Equifax executives who were told of the breach after the company first learned of it, but he figured out what happened
    • was asked to help in responding to what the company then told him was a data breach at a potential Equifax client. When he questioned the move, he was told he had to comply and didn’t need to know why
  • other Equifax executives, including Chief Financial Officer John Gamble, had previously faced questions about their sale of about $1.8 million in Equifax shares in early August, not long after Equifax first detected suspicious activity in its systems
    •  in November, an investigation by a special committee of Equifax’s board found Mr. Gamble and the others hadn’t known about the breach when they sold their stock

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