ATLANTA – Insider trading charges were announced Wednesday against an early Equifax executive who sold his shares for almost $1 million prior to when the company’s massive data breach was revealed on the public as well as stock price plunged.
A federal grand jury on Tuesday indicted Jun Ying, 42, the former chief information officer of Equifax’s U.S. Information Solutions, portion of the Atlanta-based credit reporting company. The Registration on Wednesday also charged Ying with insider trading.
In an emailed statement, lawyers Douglas Koff and Craig Warkol, who definitely are representing Ying, declined to comment.
The SEC and U.S. Attorney’s Office in Atlanta said federal investigations are ongoing. Ying may be the only former Equifax executive named in Tuesday’s indictment.
Equifax Chief Financial Officer John Gamble and three other executives sold shares worth a combined $1.8 million days after Equifax discovered suspicious activity on its network – and nearly 30 days before Ying sold his shares – but Equifax said persistent committee determined why these other executives weren’t sure in the breach when their trades were made.
A total up to 147.9 million Americans are actually relying on Equifax’s data breach, which continues to be the largest exposure of non-public information ever. It was disclosed to your public on Sept. 7.
The SEC noted that during the breach, Ying was often entrusted with nonpublic company information and was obviously a leading candidate for being the world CIO of Equifax, a career he was in fact offered on Sept. 15, in 24 hours the business announced CIO Dave Webb would retire.
Federal authorities say Equifax discovered the suspicious activity on its network on July 29. In mid-August, the organization changed administrative credentials for most of internal databases. Ying was aware about these changes, and employees who reported to him were liable for a few of them. On Aug. 25, Ying in conjunction with several employees who reported to him were motivated to help respond, although he was told then how the work involved a Equifax customer, not Equifax itself, the indictment says.
Ying sent text messages to a co-worker saying, “Sounds bad. Natural meats end up being the one breached,” and “I’m commencing to put 2 and a pair of together,” the indictment says.
Three days later, Ying used his Equifax computer to perform internet searches for the affect on the Experian stock cost of a 2015 breach during this credit rating agencies company. Later that morning, on Aug. 28, he exercised all his available investment and received 6,815 shares of Equifax stock, that he or she sold for longer than $950,000. That represented a gain more than $480,000, prosecutors said.
The SEC complaint says Ying worked at Equifax until October.
“Upon discovering Mr. Ying’s August sale of Equifax shares, we launched overview of his trading activity, concluded he violated our company’s trading policies, separated him through the company and reported our findings to governing bodies,” Equifax said in a emailed statement. “We are fully cooperating together with the DOJ and also the SEC, and may carry on doing so.”
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