Former Equifax employee pleads guilty to insider trading

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(Reuters) – An old Equifax Inc. the employee claimed last year that the credit reporting company was guilty of insider information trade before revealing a cyber attack that had exposed about 148 million people’s personal data.

Prosecutors have argued that Sudhakar Reddy Bonthu, a former software development manager who helped answer Equifax’s breach, was guilty of a single inward trade in a federal court in Atlanta.

Mr Bonthu, 44, is two former Equifax officers who have blamed federal prosecutors for accusing him of profiting by trading confidential information about the cyber attack before revealing the company’s infringing data last September.

Attorney Meg Strickler confirmed Mr. Bonthu’s objection, but there was no other comment. Sentence is scheduled for October 18th.

Equifax fired Mr. Bonthu in March after refusing to cooperate with the internal investigation, according to the US Securities and Exchange Commission, which had reached an agreement with him. Equifax said he was cooperating with the authorities.

According to the government, between May and July 2017, hackers have access to the Equifax databases, enabling millions of people to receive their names, Social Security numbers, birthdays and addresses.

Atlanta-based Equifax, after discovering the suspicious event, began investigating the violation in July 2017 and allegedly claimed in August that the consumer’s data were stolen.

According to prosecutors, on August 25, 2017, Mr. Bonthu, a member of a Equifax unit developing security products for his clients, was assigned to other employees to intervene in the breach, even though Equifax itself was not said to have been violated.

According to the prosecutors, by August 30, 2017, Bonthu knew that at least 100 million people had been subjected to violations.

The prosecutors stated that the next day, Equifax received an e-mail with a file of the stock exchange symbol.

After determining that Equifax was violated, Mr. Bonthu bought the shares before the stock using his wife’s brokerage account, which, according to the prosecutor’s office, allows the company to make a profit when the stock price drops.

Equifax announced the violation on September 7, 2017 after the market closed. The share price fell the next day, and Mr. Bonthu earned more than $ 75,000 more than the chargers.

Against Jun Ying, a former Equifax technology manager, a separate internal trade case is pending. He claimed he was innocent.

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