back to article Ex-Equifax exec charged with insider trading after bagging 1 MEEELLION dollars in stock sale

A former Equifax exec was today charged with insider trading for offloading almost $1m of shares before the company went public about the scandalous mass data breach. The global credit reporting agency was hacked in May '17, which exposed the personal data of 148 million people. The firm discovered the breach at the end of …

  1. Anonymous Coward
    Anonymous Coward

    It's currently trading at the $123 mark so he didn't gain that much by doing this anyway.

    He deserves a very strong worded letter telling him he was very naughty. This is white collar financial crime after all.

    1. Adam 52 Silver badge

      This is white collar crime in the US. They do things differently there.

      1. CrazyOldCatMan

        This is white collar crime in the US. They do things differently there.

        Yeah - there they get given jobs in the Trump government..

    2. Mayday
      Pirate

      White Collar Worldcom

      Ever heard of a fellow called Bernard Ebbers?

    3. Michael Wojcik Silver badge

      It's currently trading at the $123 mark so he didn't gain that much by doing this anyway.

      Yes, that's the real irony. He should have realized that the market was unlikely to actually punish Equihax, and just held on for a while longer.

      A cynical investor who bought Equifax after the initial price drop would have done well.

  2. Pascal Monett Silver badge

    What a moron

    So he got himself a million bucks and did not immediately transfer the money to some extradition-free tropical paradise ?

    Did he never watch any crime series ?

    Sorry bud, but if you know your transaction is going to raise a red flag, and you definitely should have known, you don't stick around to watch the fallout.

    Anyhow, I'm glad you're going to have time to reflect on how wrong you were when you though that your shiny new million bucks was going to go totally unnoticed.

    1. Adam 52 Silver badge

      Re: What a moron

      Exactly. In fact if you know there are going to be eyes all over it why risk everything for $1m instead of $900k? Unless he really thought Equifax were toast and his shares would be worthless. Or he's innocent and just unlucky with the timing.

  3. ST Silver badge
    Mushroom

    What about the other perps?

    And the ex-CEO? They get to walk scot-free?

    Didn't the CEO of Equifax dump some massive stock right before the breach was disclosed? That's not insider trading?

    Ooooh, sorry. My mistake, I forgot. He had no idea.

    1. Anonymous Coward
      Anonymous Coward

      Re: What about the other perps?

      "Didn't the CEO of Equifax dump some massive stock right before the breach was disclosed? That's not insider trading?"

      Not to say the CEO is innocent, but directors in big companies shift large volumes of stock all the time. Equifax averaged a little more than 10 reported transactions every month in 2017. Given they discovered the breach at the start of August and disclosed it six weeks later, it would have been more surprising if there had been no transactions between the event and full disclosure. Doubly so given these types of transactions must be arranged weeks or months in advance and executed in the blind, unless you want the SEC crawling all over you.

      This chap has the SEC crawling all over him. The others don't. Make of that what you will.

      1. Mark 85 Silver badge

        Re: What about the other perps?

        As recall, the others were "preplanned and scheduled" which is legal and the article mentions this. Perhaps the board should NOT be allowed to sell stock until they leave the company. Might change the mindset from "short term goals" to "long term thinking".

  4. Eddy Ito

    I knew they would find a token scapegoat sooner or later. Now they can claim they cracked down hard on evils of Equifax and declare everything is back to normal and everyone can move along. Of course this "normal" where the actual victims of the breach have no recourse was the problem in the first place.

  5. IglooDude

    If one employee exploits the breach, it's insider trading. If the entire company exploits the breach (such as to get people to sign up for its own affiliated ID monitoring service free for the first year and then pay for it after that), it's good business.

    1. Michael Wojcik Silver badge

      When your incompetence hands you lemons, make lemonade.

  6. elvisimprsntr

    I think the US politicians are more upset...

    I think the US politicians are more upset they were not in on the fix, who cannot be charged with insider trading.

  7. Rich 10

    At least one of the guilty parties in this Uber-FUBAR situation is going to get something of his just desserts. That entire technical management team deserves to get charged with at least criminal negligence.

  8. DCFusor
    Flame

    And, they are more important than you know.

    Today I learned that you cannot create a "MySSA" account with Social Security if the credit agencies don't have you listed, as is my case due to not borrowing money or failing to pay someone for decades.

    So, these jerks have even more power than you think. This cuts one off from all online paperwork with the SSA, and reverts you to snail mail for everything (without easy to find addresses to mail things too, and a many hour phone wait to ask).

    Ain't it wondercrap how the government is now wholly owned by bankers? I guess NSA doesn't answer their phone from that agency to tell them I am really me.

    1. Michael Wojcik Silver badge

      Re: And, they are more important than you know.

      Today I learned that you cannot create a "MySSA" account with Social Security if the credit agencies don't have you listed

      And this is doubly dangerous because the MySSA account-creation authentication process is very poor (Krebs has written a few pieces on the subject). So creating your MySSA account as soon as possible is highly recommended, to prevent an imposter from doing so.

      At some point something is likely to change so that you can create a MySSA account - you might get some data on your credit report, or they might change the authentication process - and then you'll have to remember to do so. It's a time bomb.

      MySSA certainly has some advantages over the old "find an SSA office" system, particularly for people with limited mobility or transportation. But the implementation is terrible.

  9. Anonymous Coward
    Anonymous Coward

    Watch this Equifuk get off

    Won't spend a day in jail either... Watched 'Inside Job' (2010) recently. Lots of Docs were made about the 2008 Crash. This one is narrated by Matt Damon and is less jargon filled. Its also more artful in how it lets Regulators, Politicians, Academics and Banksters hang themselves. So what's changed? Absolutely nothing! Time to leave America-Fuck-Yeah!

    1. Anonymous Coward
      Anonymous Coward

      Time to leave America-Fuck-Yeah!

      Or clean it up. Eventually you run out of places to run to.

      1. Omgwtfbbqtime

        Re: Time to leave America-Fuck-Yeah! "Or clean it up. "

        Sweep it all under a rug.

        The one on Trump's head?

  10. Anonymous Coward
    Anonymous Coward

    Impartial And Disinterested Judges

    "However, they were cleared of insider dealing by a panel of three directors from other firms."

    Of course they were.

    1. LDS Silver badge

      Re: Impartial And Disinterested Judges

      "Canis canem non est" - Erasmus Roterodamus, IIRC.

  11. Doctor Syntax Silver badge

    "they were cleared of insider dealing by a panel of three directors from other firms."

    Assuming they have their own days in court I can't see a judge and jury being impressed by that.

  12. Robot

    I wonder why ...

    Jun Ying was charged but the other four were exonerated for the same type of crime: John Gamble, Joseph Loughran, Rodolfo Ploder, and Douglas Brandberg. Does it have anything to do with their names? Just asking.

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