A former senior executive at Equifax Inc. was criminally charged for allegedly selling almost $1 million worth of shares before the company’s announcement last year that it had suffered a massive data breach.
Jun Ying, Equifax’s ex-chief information officer for its U.S. information solutions business, allegedly used confidential information entrusted to him by the company to determine it had been hacked, the Securities and Exchange Commission said in a Wednesday statement. The U.S. Attorney’s office in Atlanta filed criminal charges against Ying, according to a separate statement.
“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.”
Source: Bloomberg Markets