Teecht. Charges Filed Against 2D Accused For Insider Trading Related To The Equifax Information Breach

ATLANTA - Sudhakar Reddy Bonthu, a erstwhile software evolution director for Equifax, was arraigned today on federal charges of insider trading for allegedly using information entrusted to him to buy set options in addition to plow a net turn a profit when the word of the information breach was made public.  A grand jury previously indicted Jun Ying, a erstwhile principal information officeholder of Equifax U.S. Information Solutions, on charges of insider trading relating to the information breach.  Ying pleaded non guilty on March 15, 2018.

“Bonthu allegedly took payoff of his seat to net turn a profit acre members of the populace were unaware of the information breach at Equifax,” said U.S. Attorney Byung J. “BJay” Pak.  “The integrity of the stock markets are jeopardized when greedy individuals who are entrusted amongst nonpublic information job the noesis for their benefit.”

“Company insiders must follow the same rules that principle investors, otherwise their actions undermine the public’s confidence inward the nation’s stock markets,” said J. C. Hacker, Acting Special Agent inward Charge of FBI Atlanta. “To hold a fair in addition to equitable stock marketplace for everyone, the FBI volition create everything inward its ability to concur those accountable who would pick out to take away hold payoff of their within knowledge.”

“As alleged inward our complaint, Bonthu used confidential information to decide that his companionship had suffered a massive information breach in addition to hence illegally profited from it,” said Richard R. Best, Director of the Securities in addition to Exchange Commission’s Atlanta Regional Office.  “Corporate employees cannot take away hold payoff of their access to sensitive information in addition to unlawfully create goodness from it.”

According to U.S. Attorney Pak, the charges, in addition to other information presented inward court: Equifax Inc. is a consumer credit reporting way headquartered inward Atlanta. During the summertime of 2017, Equifax was the victim of a information breach, where hackers acquired names, Social Security numbers, nascency dates, in addition to addresses of over 145 1000000 consumers.

Sudhakar Reddy Bonthu was a software evolution director for Equifax’s Global Consumer Services squad inward August 2017.  In that role, he was entrusted amongst information that allegedly resulted inward him finally that Equifax was the victim of a information breach.  On August 25, 2017, Bonthu in addition to other Equifax employees were asked to aid inward responding to the breach, although he was non straight informed that Equifax had been breached.  On August 25, 2017, Bonthu was informed that the target appointment for announcing the breach publicly was September 6, 2017.  Around August 30, 2017, Bonthu learned that roughly 100 1000000 individuals’ information was exposed every bit component of the breach in addition to that the information included names in addition to Social Security numbers.  The side past times side day, Bonthu received an electronic mail related to his operate on the breach amongst a file attached named “EFXDatabreach.postman_collection.”  “EFX” is the stock pump symbol for Equifax.

On September 1, 2017, Bonthu bought 86 set options inward Equifax stock that expired on September 15, 2017.  Those set options allowed him to net turn a profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the information breach on September 7, 2017, in addition to its stock savage the side past times side day.  Bonthu hence exercised his set options, realizing a net turn a profit of to a greater extent than than $75,000.

Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia was arraigned on a criminal information earlier U.S. Magistrate Judge Alan J. Baverman, afterward waiving his correct to hold out indicted past times a federal grand jury.

Members of the populace are reminded that an information in addition to an indictment exclusively incorporate charges.  A accused is presumed innocent of the charges in addition to it volition hold out the government’s burden to examine the defendant’s guilt beyond a reasonable uncertainty at trial.

This instance is beingness investigated past times the Federal Bureau of Investigation, amongst assistance from the U.S. Securities in addition to Exchange Commission.

Christopher J. Huber, Deputy Chief of the Complex Frauds Section, in addition to Assistant U.S. Attorney Lynsey M. Barron are prosecuting the case.