A former Equifax manager who tried to gain off the companionship ’s dreadful 2017 information breach with a trivial insider trading will spend eight calendar month on home lying-in , forfeit his ill - gotten gains , and pay an additional $ 50,000 in fine .
Sudhakar Reddy Bonthu pleaded guilty in July to purchasingput optionsin Equifax fund ahead of the credit entry - cover federal agency ’s promulgation of the data rift , which queer names , Social Security numbers , nativity date , and other tender selective information belong to some 145 million consumer . The put option enable Bonthu , a software development coach at the time , to profit cursorily after Equifax ’s stock depreciated in reaction to the news .
He was condemn to home labor on Monday and , in improver to mulct , was force to twist over the more than $ 75,000 he made .
public prosecutor find that Bonthu was not alerted to the breach at Equifax beforehand , but forecast it out anyway after being task with developing an online interface for an nameless company stand from a data point rupture . He also get a single file related to the falling out marked “ EFX , ” the stemma ticker symbol for Equifax .
Bonthu purchased 86 put options on September 1 , 2017 , which would allow him to profit openhanded if Equifax ’s stock devalued considerably within two calendar week . The party disclosed the breach publically on September 7 and Bonthu rake in more than $ 75,000 shortly after .
In a statement , U.S. Attorney Byung Pak said that Bonthu “ took vantage of information entrusted to him so as to make a speedy profit , ” adding : “ The wholeness of the stock marketplace and the confidence of investors are impaired by those who use nonpublic information for personal gain . ”
“ If we do n’t hold company insiders to the same rules that govern regular investors , the populace ’s confidence in the stock securities industry erodes , ” add Chris Hacker , Special Agent in Charge of FBI Atlanta .
Four Equifax executive director were also found to have sold off company store prior to the breach being announced . However , the companionship cleared them of wrongdoing in November , saying none of them had “ knowledge of the incident when their trades were made ” and that preclearance for the trade was “ appropriately obtained . ”
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