Three Equifax executives dumped stock before the cyber attack was made public

By William Gayde ยท 12 replies
Sep 8, 2017
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  1. As the tech and financial services community are still coming to terms with the massive breach at Equifax, new details have emerged showing three senior executives sold shares just days after the breach was discovered. All of this happened before the details were made public and has raised countless questions about insider trading.

    The breach, which Equifax believes took place from May through July 29, revealed the personal information of about 143 million US customers including some 200,000 credit card numbers. The three executives happen to have sold $1.8 million worth of shares on August 1st and 2nd, more than a month before the information was publicly released.

    CFO John Camble sold $946,000 worth of shares, president of US information solutions Joseph Loughran sold $584,000 worth of shares, and Rodolfo Ploder, president of workforce solutions, sold $250,000 worth of stock. The company claims that they had "no knowledge that an intrusion had occurred" and the sale was only for a "small percentage of their Equifax shares."

    When insiders want to legally trade their stock, they typically set up a special type of trading plan following the SEC Rule 10b5-1. This is designed to insulate them from any insider trading allegations coming from knowledge of material non-public information. The plans typically work by automatically trading on specified dates without the insider's input. As it stands, none of the Equifax transactions were part of a 10b5-1 plan.

    Numerous investigations will begin to look into the details of this transaction. Some industry experts believe the three will likely be fired from their Equifax positions and may face serious charges. As of publishing, the SEC has declined to comment. Equifax shares (EFX) were down 13% following the breach.

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  2. Uncle Al

    Uncle Al TS Evangelist Posts: 2,930   +1,626

    The term is "insider trading" and they should all be forced to relinquish their profits and serve 5 years in prison as well as have any licenses they hold for doing business on the exchanged revoked for life. Yep, it's severe but if we don't take is serious, who else will???
     
  3. Kotters

    Kotters TS Addict Posts: 224   +146

    It's important to remember that insider trading requires them to have used knowledge that is only accessible to insiders to make their decisions. They should only be punished if we have reasonable evidence to suggest that this is in fact what happened.

    Punishing people who may have been innocent without proper process is distasteful, even if they have more money than me.

    That all said, if they did indeed sell as a result of the breach before anyone else knew, **** 'em hard with the law.
     
    Reehahs likes this.
  4. jobeard

    jobeard TS Ambassador Posts: 10,530   +818

    Clearly so and a violation of SEC rules. Look for severe penalties or convictions in the near future.
     
  5. trparky

    trparky TS Addict Posts: 213   +102

    If you believe that they didn't have prior knowledge, then I have a nice bridge in Brooklyn that I'd like to sell you. Cheap!

    I hope that these guys get nailed to the wall!!!
     
  6. Kenrick

    Kenrick TS Evangelist Posts: 438   +279

    Just to add, if you sign up to the 1 year free monitoring you are waiving your rights to sue them. Like I said before, 1 year free monitoring is not enough. They should be held accountable.
     
    Greg S likes this.
  7. Kotters

    Kotters TS Addict Posts: 224   +146

    Cool. You ready to share that evidence?
     
  8. trparky

    trparky TS Addict Posts: 213   +102

    Kotters, you know darn well that they did. There's a lot of shady crap that happens in the business world all the time that goes just under the radar. For the sake of every American that has been affected by this, I hope that they use these people as an example of what happens to you when you screw up. For too long have executives received nothing but a slap on the wrist as they get their golden parachute. That crap needs to end!!! You destroy your company? You get real hard time!
     
  9. C E Parsons

    C E Parsons TS Rookie

    I was calling BS when I read the comments from people trying to defend these crooks: trparky is right. Nail 'em!
     
  10. Kotters

    Kotters TS Addict Posts: 224   +146

    So you don't. You're about as useful as Alex Jones
     
  11. Polycount

    Polycount TS Addict Posts: 67   +19

    We'll leave it up to an investigator to decide whether or not they had any knowledge of the breach... Something tells me the "We totally didn't know, believe us because we mishandled 143 million people's private information" excuse ain't gonna fly.
     
  12. Darth Shiv

    Darth Shiv TS Evangelist Posts: 1,781   +442

    5 years is not severe. Considering the ENORMITY of the damage their negligence has caused, they need to cop a really flogging. 5 years considering the amount of wealth they have received is a small price to pay for securing your family's financial future indefinitely at the cost of avg Joe.
     
  13. mailpup

    mailpup TS Special Forces Posts: 7,119   +429

    If charged and convicted, it is unlikely they will get to keep their "ill gotten gains."
     

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