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Businesses Crime

Former Equifax CIO Charged With Insider Trading (bloomberg.com) 90

Posted by msmash from the gift-that-keeps-giving dept.
OffTheLip writes: Jun Ying, a former CIO with Equifax has been charged with insider trading by the US Department of Justice. From the linked article:

Wednesday's announcement marks the first criminal charge brought in one of the largest data breaches in history. Ying, the former chief information officer for Equifax's U.S. information-solutions business, used confidential information entrusted to him by the company to determine it had been hacked, according to a separate complaint filed by the Securities and Exchange Commission.

ZDNet adds: According to a Justice Department statement, Ying sent a text message to a colleague two weeks before Equifax revealed the hack, in which he said the breach "sounds bad." Three days later, Ying searched the web to research the effect of Experian's 2015 own breach on its stock price. Later that day, Ying excised all his available stock options.


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Former Equifax CIO Charged With Insider Trading More

Former Equifax CIO Charged With Insider Trading

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  • Incompetence and negligence (Score:5, Insightful)

    by sinij ( 911942 ) on Wednesday March 14, 2018 @04:02PM (#56261237)
    Insider trading on his own incompetence and negligence is criminal, but incompetence and negligence itself is not punished in any way.

    • Re: (Score:1, Insightful)

      by jellomizer ( 103300 )

      Just normal Incompetence is punishable, then we would all be in jail. Every day we are to push to areas where we havn't been before, and when doing something new or out of your comfort zone mistakes are made.
      A Company CEO takes a lot of risks, and is constantly out of their zone. So their job demands them to be incompetent. If competent, then the company will stagnate and fall behind.
      Mistakes are always made, now you cross the line when you use these mistakes to short sell the company your job is to help g

      • Fucking rubbish, as usual.

        A surgeon does his best to save a patient, to no avail.

        A surgeon operates while drunk, on the wrong patient, while he's upside down.

        Are they the same thing?

        • Re: (Score:3)

          by tlhIngan ( 30335 )

          Fucking rubbish, as usual.

          A surgeon does his best to save a patient, to no avail.

          A surgeon operates while drunk, on the wrong patient, while he's upside down.

          Are they the same thing?

          No, one is a guy doing his job and having bad luck. The latter is someone being negligent. Not incompetent. Incompetent would be said surgeon encountering something he was never trained for and trying his best to fix it, to no avail.

          Incompetence is not having the skills or training when you encounter something - i.e., youre not

          • Negligence can include incompetence, if one knows of their incompetence and proceeds anyway. It could also include "should have known" - thinks they can do it, but are not certified in a sub-specialty, or training lapsed.

            It wouldn't apply in extenuating circumstances, such as if the surgeon is drunk and the patient will be dead in 5 minutes with no other surgeon closer than one hour away.

          • The premise was that when you do something new you're by definition incompetent. This is bollocks, because there's still an existing body of knowledge that can be applied rather than chucking shit in the air and seeing how it lands.

            You see innovative new buildings and bridges all the time. The vast majority of them don't fall down.

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Up next, Intel's CEO?

      • Re: Incompetence and negligence (Score:1)

        by Anonymous Coward

        I sincerely doubt someone at that level would end up being a fall guy like this dummy.

      • Up next, Intel's CEO?

        Hopefully! You can hardly make it any more obvious than Krzanich. On top of it he lied and was caught doing so, too.
        What more could they possibly need against him?

    • The breach itself, though bad, I think could happen to a lot of companies even if the CIO is correctly funding and prioritizing security. With huge operations, it is really hard to know exactly what your risk exposure is and you don't know what you don't know about what holes are there.

      The trading though - think about the buyers. He sold shares to dupes knowing that they would be worth less in a short time based on privileged knowledge he had because of his position. That's way more than incompetence,

      • Re: (Score:2)

        by sinij ( 911942 )
        Breach of this kind could only happen as a result of negligence. There were no separate access control mechanism for the data, there was no protection of data at rest, and there was a known vulnerability in the system that they failed to patch for 6+ months. It just doesn't get any more textbook negligence than that.

    • We couldn't build enough prisons to hold those guilty of that.

    • Re: (Score:2)

      by necro81 ( 917438 )

      Insider trading on his own incompetence and negligence is criminal, but incompetence and negligence itself is not punished in any way.

      Considering that, ten years out, none of the Wall Street folks that caused the financial crisis have been convicted, let alone indicted, I will consider this Equifax development as a tiny sliver of progress.

  • Gee really? (Score:4, Funny)

    by smithmc ( 451373 ) on Wednesday March 14, 2018 @04:03PM (#56261241) Journal
    I am Jack's complete lack of surprise.

  • Forfeiture of assets? (Score:1)

    by Anonymous Coward

    So all those stock options are going to be seized and used to compensate everyone who suffered as a result of the breach right?

    Maybe?

    I wish they would bring back public stoning.

    • Re:Forfeiture of assets? (Score:5, Informative)

      by slew ( 2918 ) on Wednesday March 14, 2018 @04:32PM (#56261409)

      So all those stock options are going to be seized and used to compensate everyone who suffered as a result of the breach right?

      Maybe?

      Although it is traditional that all the money the SEC collects simply goes to the US treasury, it is also possible for the money to be used to re-imburse other investors (under the Fair Funds for Investors provision of the Sarbanes-Oxley Act).

      Of course this provision has rarely been used and is of no benefit to those that suffered from the breach (it only applies to investors).

      I wish they would bring back public stoning.

      So what other parts of Sharia law are you in favor of?

      • Sharia law has public stoning? Didn't know that, I just think it sounds like a good punishment for when idiots really screw up. Sure beats rewarding them with free wifi, free food, free gym and a comfortable stay for a few months or years like our "justice" system does now.

        • Re: (Score:1)

          by Anonymous Coward

          Sharia law has public stoning? Didn't know that, I just think it sounds like a good punishment for when idiots really screw up. Sure beats rewarding them with free wifi, free food, free gym and a comfortable stay for a few months or years like our "justice" system does now.

          Under Sharia law, 100 lashes followed by stoning is the proscribed (Hudud) punishment in cases of adultery committed by a married man or married woman. The stone shall not be so big so as to kill the person by one or two strikes, neither shall it be so small that it cannot be called a stone. The victim is intended to suffer.

          FWIW, apparently under Sharia law, the proscribed (Hudud) punishment for theft over a certain value is simply public amputation of the hand. Qisas (revenge/retaliation) is also a prosc

      • I'm fine with it, as long as they don't allow women. [youtube.com]

  • Spoiler: slap on the wrist (Score:1)

    by Anonymous Coward

    Bring back the guillotine if you want this nonsense to end. It's going to have to get straight up French Revolution before the parasites stop sucking.

  • Close one (Score:1)

    by Anonymous Coward

    Thank goodness we have Clinton in office to prosecute this criminal. If Trump had been president his business friendly DOJ would have looked the other way.

    • Re: (Score:1)

      by Anonymous Coward

      Thank goodness we have Clinton in office

      Indeed. Also, today Clinton's ambassador to the UN Nikki Haley warned the world that Russia must be punished for its chemical weapon attack in London, warning that New York may be next. If Trump had been president the US government would have ignored or tried to downplay these events like the extremist right wing Jeremy Corbin is doing.

      • Re: (Score:2)

        by Cederic ( 9623 )

        There's been a chemical weapon attack in London?

        I heard about the use of a nerve agent in Salisbury, wasn't aware of the one in London. Surprised it hasn't been mentioned on the news.

  • Drag them all out into the street (Score:5, Interesting)

    by Rick Schumann ( 4662797 ) on Wednesday March 14, 2018 @04:29PM (#56261387) Journal
    Bring back the guillotine. Chop all their heads off, plant them on poles as a warning to the rest of the 'financial community' to NOT FUCK UP.
    Like everyone else I'm sitting here wondering if the coin landed 'heads' or 'tails' so far as my entire identity having been stolen or not.

    • Bring back the guillotine. Chop all their heads off, plant them on poles as a warning to the rest of the 'financial community' to NOT FUCK UP.

      Like everyone else I'm sitting here wondering if the coin landed 'heads' or 'tails' so far as my entire identity having been stolen or not.

      There could be a whole area of wall street dedicated to this display,,,

      • There we go. We need a "WALL OF SHAME" for these types. Pictures, names, addresses and phone numbers. Never let them forget.

    • Re:Drag them all out into the street (Score:5, Insightful)

      by Tailhook ( 98486 ) on Wednesday March 14, 2018 @04:49PM (#56261509)

      as a warning to the rest of the 'financial community' to NOT FUCK UP.

      The "rest of the 'financial community'" understands that the "FUCK UP" here was a traceable use of the Internet and text messages.

      • IDGAF what the Mechanism of Fuck-up was, I just want it to never happen again, no matter how many heads have to be severed to get the message across of how vitally important it is to LITERALLY EVERYONE.

        • Re: (Score:2)

          by Tailhook ( 98486 )

          You're going to need a GULAG system.

          Enjoy becoming the next legendary atrocity shitlord of our species.

          • Oh for fuck's sake.. overly-literal much?
            I'm PISSED OFF about this. Who in their right mind wouldn't be?
            Go away. You're no fun at all.

            • Re: (Score:2)

              by Cederic ( 9623 )

              I'd rather be no fun than execute someone for being an idiot.

              You'd rather have fun killing someone. Seek medical help.

      • Re: (Score:2)

        by necro81 ( 917438 )

        The "rest of the 'financial community'" understands that the "FUCK UP" here was a traceable use of the Internet and text messages.

        Indeed. The rest of the financial community is probably shaking their heads at this guy's fuck up, which amounts to 1) getting caught and 2) selling his stock instead of just waiting for his golden parachute.

    • Re: (Score:2)

      by rtb61 ( 674572 )

      In this case, heads or tails, did someone at the company exercise their stock options in the months prior to the hack and short the stock too boot. How about deposits in an offshore bank account by a competitor. Hacking another tech company is proving to be a sure way to major profits, shorts, gained market share, good luck, with the board and the executive team the last to be trusted. It will get messier from here on in.

    • Bring back the guillotine. Chop all their heads off, plant them on poles as a warning to the rest of the 'financial community' to NOT FUCK UP.

      Those in charge of the financial community would simply hire designated head-rolling scapegoats as a response, and continue with their fuckery.

  • Arrogance (Score:3)

    by amiga3D ( 567632 ) on Wednesday March 14, 2018 @06:14PM (#56261955)

    Total arrogance is a kind of stupidity. This ass assumed he could get away with this crap because he's "special." The problem is, the stock market is one of the few places where elites get burned just like anyone else. If you blatantly screw the system the system will screw you no matter who you are. Martha Stewart found this out. She got caught up in insider trading and although the Feds case against her was weak they managed to put her in jail for lying to investigators. If you fuck with the sacred cow of Wall Street they will fuck you back.

  • Former CIO? (Score:5, Interesting)

    by 140Mandak262Jamuna ( 970587 ) on Wednesday March 14, 2018 @06:18PM (#56261975) Journal
    So this is the person replaced by the Music Major, right?

    And this guy is so inept he left behind an audit trail while planning to do some insider trading.

    How did anyone this incompetent rise to that level on such a critical position in the company? Just yesterday I interviewed a PhD candidate has published six papers as first author, fantastic work that must have taken couple of years of relentless of toiling. Whether I hire him or neither he nor a legion of candidates like this are struggling to get 100K jobs. And this doofus gets to be the CIO with stock options and million dollar pay benefit packages...

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      It is easy to be a CIO.

      First, work in tech for a few years.
      Second, find a company that has never outsourced. Middle market banks make good targets. Middle Market health care too.
      Third, layoff and outsource.
      Fourth, put in linked in how you saved millions.
      Fifth, get CIO job at fortune 500 just before #3 backfires and your downtime hits twitter.

    • And this guy is so inept he left behind an audit trail while planning to do some insider trading.

      Hey, leaving an audit trail is part of his job!

    • How did anyone this incompetent rise to that level on such a critical position in the company?

      The most important attribute to get to such CxO positions is to be manipulative and able to lie without the slightest pang of conscience. Competence is totally irrelevant.

    • Re: (Score:2)

      by Cederic ( 9623 )

      No, the music major was the CISO, not the CIO. Different roles, and frequently (but I don't know at Equifax) the CISO will report in to the CIO.

  • What happened to ... (Score:3)

    by whoever57 ( 658626 ) on Wednesday March 14, 2018 @06:20PM (#56261985) Journal

    What happened to all the BS about the execs' trading activity being normal pre-planned sales? Obviously that was a lie.

  • And his punishment will be ... (Score:5, Funny)

    by fahrbot-bot ( 874524 ) on Wednesday March 14, 2018 @06:53PM (#56262149)
    ... having is credit history maintained by Equifax.

  • Others got by just fine... (Score:4, Interesting)

    by edi_guy ( 2225738 ) on Wednesday March 14, 2018 @06:53PM (#56262151)
    From Bloomberg article: "Three Equifax Inc. senior executives -- Chief Financial Officer John Gamble, and unit presidents Joseph Loughran and Rodolfo Ploder -- sold shares worth almost $1.8 million in the days after the company discovered the breach. Equifax has said those three executives had not been informed of the incident when they initiated the sales."

    Sounds like his bosses found themselves a patsy.

  • "Later that day, Ying excised all his available stock options."
    Excise: to remove by cutting
    Exercise: an action or actions intended to improve something or make something happen
    (both from https://dictionary.cambridge.o... [cambridge.org]

    As I understand it, to exercise a stock option would be to pay the option's strike price and take possession of the shares. This would not in itself be of benefit if you expected the share price to fall, but it would be a necessary step prior to selling the shares. To excise stock options me

  • some actual money. That seems to be the only thing that gets anyone in trouble. That or embarrassing them in front of the rubes in the working class (ala Martin Shkreli, whose conviction everybody on the left is doing a victory lap over meanwhile the drug price is still 5000% what it was [huffingtonpost.com]).

    Anyway, talk to me when a) he does jail time and b) we see meaningful regulations to prevent this sort of thing from happening again.

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