The U.S. Shelters and Exchange Commission has charged a former chief information officer with Equifax for convincing shares in the company shortly before news of a massive data chasm of the personal information of 148 million Americans became public in September.
Agreeing to the SEC, Jun Ying, who was chief information officer of one of the company’s U.S. businesses at the time “allegedly cast-off confidential information entrusted to him by the company to conclude that Equifax had suffered a genuine breach” in late August.
“The SEC alleges that before Equifax’s unshrouded disclosure of the data breach, Ying exercised all of his vested Equifax usual options and then sold the shares, reaping proceeds of nearly $1 million. Go together to the complaint, by selling before public disclosure of the data breach, Ying escaped more than $117,000 in losses,” the SEC’s complaint alleges.
The stock customer base regulator has charged Ying with violating the antifraud provisions of federal securities laws and is demand “disgorgement of ill-gotten gains plus interest, penalties, and injunctive basso-rilievo low relief.”
“Corporate insiders who learn inside information, including information concerning material cyber intrusions, cannot betray shareholders for their own economic benefit,” said Richard Best, Director of the SEC’s Atlanta office.
Ying is also surface criminal charges by federal authorities.
Shares of the Atlanta-based credit information firm plunged in early September after the company revealed it was the martyr of a data breach.