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The sale of nearly $2 million in corporate stock by high-level Equifax executives shortly after the company learned of a major data breach has sparked public outrage that could turn into another hurdle for the credit rating agency.
The sales all occurred before the company publicly reported the breach, a disclosure that quickly sent its stock tumbling. The timing of the sales could attract federal scrutiny, legal experts say, though proving insider trading would be difficult. A company spokeswoman said the executives did not know about the breach when they sold their shares.
“It certainly would be exactly the type of trading pattern before a high-profile event that the [Securities and Exchange Commission] would investigate,” said Brandon L. Garrett, a professor at the University of Virginia School of Law. “Even if they do not bring charges it is the type of conduct that a company should not tolerate in its executives. It sends a terrible message to the public and to customers.”
The SEC declined to comment on whether it was investigating the matter.
(Score: 0) by Anonymous Coward on Monday September 11 2017, @09:11PM (5 children)
On a point of order, if you please, it should be remembered that Martha Stewart went to jail on a much less egregious offence during the Obama administration. If the same is to be expected from both sides of the aisle, then the honourable member's suggestion can only be interpreted to imply that the SEC will investigate and prosecute in earnest.
(Score: 5, Insightful) by fustakrakich on Monday September 11 2017, @09:48PM (2 children)
Martha Stewart is a nobody. Equifax is a vital part of banking's usury practice and political campaign funding. They would/will get equal treatment from democrats and republicans alike. It's strictly business. There is no reason to look at it any other way.
La politica e i criminali sono la stessa cosa..
(Score: 0) by Anonymous Coward on Monday September 11 2017, @10:36PM
Equifax might be important (although that rug can be pulled away real quick - as it was for Enron), but the big fish on top? They're all swimming in the pond, and are entirely dispensible the moment that they look like rocking any important boats.
Besides, Equifax is not institutionally being accused of cheating the market - just massive data incompetence.
(Score: 0) by Anonymous Coward on Tuesday September 12 2017, @04:12AM
I respectively disagree. We should look at the whole system of buying Government as treason and throw everyone involved in jail.
I'll be over in the corner holding my breath and petting a unicorn while I wait for that to happen. Either that or having more scotch.
(Score: 4, Informative) by khallow on Monday September 11 2017, @11:45PM (1 child)
It was actually during Bush's first term in 2004.
(Score: 0) by Anonymous Coward on Monday September 11 2017, @11:51PM
Jesus, that long ago? Wow, I'm old...
Anyway, that actually makes the argument stronger that people might face consequences under Trump than they might have under Obama or Clinton. After all, the Bushes were frequently described as the pets of Wall Street.