The Justice Department announced this week that former Equifax CIO Jun Ying has been sentenced to four months in prison for insider trading. Earlier this year, he argued for selling his shares in the company prior to the announcement that it was hit by a huge data link in 2017.
The Security and Exchanges Commission imposed Ying with inside information last year. The Ministry of Justice says that in August 2017, after hearing about the infringement, he started investigating the impact that a similar infringement had on the share price of another company. Later that morning, he quickly exercised all his stock options and sold nearly a million dollars in sales. In addition, he avoided a $ 117,000 loss that he would have made differently when the company's price fell after the announcement. More than 150 million people had their personal information leaked during the incident.
"Ying thought of his own financial gain before the millions of people exposed to this breach of data even knew they were the victims," said Advocate General Byung J. Pak in the announcement. "He abused the trust placed on him and the managerial position he had to take advantage of inside information." The DOJ says that Ying is the second person found guilty of insider trading: Sudhakar Reddy Bonthu, another employee, pleaded guilty last July.