Former Equifax Executive Charged With Insider Trading

Lloyd Doyle
March 15, 2018

The suit also alleges that an hour before Ying sold his shares he "used a search engine to find information on the internet concerning the September 2015 cybersecurity breach of Experian, another one of the three major credit bureaus, and the impact that breach had on Experian's stock price".

"This defendant took advantage of his position as Equifax's USIS Chief Information Officer and allegedly sold over $950,000 worth of stock to profit before the company announced a data breach that impacted over 145 million Americans", said U.S. Attorney Byung J.

"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", Richard Best, director of the SEC's regional office in Atlanta said in a statement.

It is the first time that the U.S. government has pursued insider trading charges against somebody accused of profiting from information about a cyber attack, said David Axelrod, a former SEC trial attorney who is a partner at law firm Ballard Spahr.

Equifax detected that hackers had exploited a vulnerability on its website on July 29, 2017, potentially exposing personal information on 148 million consumers.

According to the SEC complaint, before the breach was made public, Ying exercised all of his Equifax stock options, reaping a profit of almost $1 million and avoiding losses of more than $117,000 in losses.

The company said the charges against Ying are unrelated to stock sales by other executives, which led to intense scrutiny from lawmakers who pressed the SEC to launch an insider trading investigation. Ying is accused of knowing that Equifax had been hacked and selling company shares before the public was notified.

We're working to learning about text messages the suspect allegedly sent before the data breach, for Channel 2 Action News at Noon.

A federal grand jury on Tuesday indicted Jun Ying, 42, the former chief information officer of Equifax's U.S. Information Solutions, part of the Atlanta-based credit reporting company.

CFO John Gamble sold nearly $950,000 worth of shares, and US information solutions president, Joseph Loughran, sold shares worth about $685,000 on August 1. Equifax concluded on October 16 that Ying had violated the company's insider-trading policy and that he should be terminated, prompting his resignation, the SEC said.

Ying avoided $117,000 in losses because of the timing of his sale, the SEC said in a civil complaint.

Other reports by Iphone Fresh

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