BREAKING: Former Equifax Exec Charged With Insider Trading

You might remember that the feds, specifically the SEC were looking at execs at Equifax who on the surface dumped shares in the company before it became public that the company was pwned in epic fashion by hackers. Now It seems that a former CIO of an Equifax business unit has been nailed by the feds for doing just that:

According to the SEC’s complaint, Jun Ying, who was next in line to be the company’s global CIO, allegedly used confidential information entrusted to him by the company to conclude that Equifax had suffered a serious breach.  The SEC alleges that before Equifax’s public disclosure of the data breach, Ying exercised all of his vested Equifax stock options and then sold the shares, reaping proceeds of nearly $1 million.  According to the complaint, by selling before public disclosure of the data breach, Ying avoided more than $117,000 in losses.

“As alleged in our complaint, Ying used confidential information to conclude that his company had suffered a massive data breach, and he dumped his stock before the news went public,” said Richard R. Best, Director of the SEC’s Atlanta Regional Office.  “Corporate insiders who learn inside information, including information about material cyber intrusions, cannot betray shareholders for their own financial benefit.”

Here’s the thing. When the feds charge you with insider trading, you’re likely going to the big house as your chance of defending yourself isn’t very good. So I hope this fellow has his affairs in order.

Oh, other execs whether they be current or former ones might want to put their lawyers on speed dial because the press release that I linked to above indicates that the investigation is still ongoing. Which means more Equifax types might be facing the same treatment in the near future.

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