The Securities and Exchange Commission (SEC) recently charged a former Equifax Chief Information Officer of a U.S business division with engaging in illegal insider trading ahead of Equifax’s September 2017 announcements of a massive data breach.
The SEC’s complaint alleged that Jun Ying, who was next in line to become Equifax’s Global CIO, used confidential,nonpublic information entrusted to him by the company to discern that Equifax suffered a critical security breach. The SEC further contended in its enforcement action that before Equifax made public disclosure of the breach, Ying exercised all of his vested company stock options and then liquidated the shares for nearly $1 million. The SEC claims that Ying, through his insider trading activities, avoided losses of more than $117,000.00 by dumping his shares.
In what is becoming more common in Government insider trading cases, the U.S. Attorney’s Office for the Northern District of Georgia initiated parallel criminal charges against Ying.
The SEC’s insider trading complaint against Ying charges him with violations of the antifraud provisions of the federal securities laws and seeks the typical remedies sought by the SEC in insider trading cases: (1) disgorgement of ill-gotten gains in addition to prejudgment interest, (2) civil monetary penalties, and (3) injunctive relief. Here, the SEC will seek disgorgement of the losses avoided by Ying’s alleged trading on material, nonpublic information.
As a former SEC enforcement attorney who investigated numerous insider trading cases while at the SEC, and now an SEC defense attorney who represents those being investigated and prosecuted for insider trading violations, it still amazes me that corporate insiders will brazenly trade on material, nonpublic information in their own company stock. This case proves the point.
If you are under investigation for illegal insider trading, or have been sued by the SEC or criminally prosecuted for securities trading in advance of public news, it is imperative that you retain an experienced and seasoned SEC defense attorney who knows how the Government investigates, prosecutes and resolves its insider trading cases.
David R. Chase, a SEC defense lawyer with 25 years experience, is the principal of the Law Firm of David Chase, a SEC law firm, located in Fort Lauderdale, Florida. Mr. Chase represents targets of insider trading investigations and enforcement actions throughout the nation. For a confidential consultation, call toll-free: (800) 760-0912 or contact SEC defense attorney Mr. Chase via email at: firstname.lastname@example.org.