Jun Ying, Former Equifax employee
indicted for insider trading
March 14, 2018
Jun Ying has been indicted on federal
charges of insider trading relating to his sales of Equifax Inc.
securities in advance of its announcement regarding a data breach.
“This defendant took advantage of his position as Equifax’s USIS Chief
Information Officer and allegedly sold over $950,000 worth of stock to
profit before the company announced a data breach that impacted over 145
million Americans,” said U.S. Attorney Byung J. “BJay” Pak. “Our office
takes the abuse of trust inherent in insider trading very seriously and
will prosecute those who seek to profit in this manner.”
“The alleged actions of this defendant undermine the public’s confidence
in the nation’s stock markets,” said David J. LeValley, Special Agent in
Charge of FBI Atlanta. “By prosecuting cases like this, the FBI and the
U.S. Securities and Exchange Commission are sending a strong message to
company insiders that they must follow the same rules that govern
regular investors. Otherwise, they face the severe consequences for
failing to do so.”
According to U.S. Attorney Pak, the charges, and other information
presented in court: Equifax Inc. is a consumer credit reporting agency
headquartered in Atlanta, Georgia. During the summer of 2017, Equifax
was the victim of a data breach, where hackers acquired names, Social
Security numbers, birth dates, and addresses of over 145 million
American citizens. Jun Ying was the Chief Information Officer of Equifax
U.S. Information Solutions in August 2017. In that role, he became aware
of information that resulted in him determining that Equifax had been
the victim of that data breach before that information was made public.
On Friday, August 25, 2017, Ying texted a co-worker that the breach they
were working on “Sounds bad. We may be the one breached.” The following
Monday, Ying conducted web searches on the impact of Experian’s 2015
data breach on its stock price. Later that morning, Ying exercised all
of his available stock options held at UBS Financial Services, resulting
in him receiving 6,815 shares of Equifax stock, which he then sold. He
received proceeds of over $950,000, and realized a gain of over
$480,000. On September 7, 2017, Equifax publicly announced its data
breach, which resulted in its stock price falling.
Ying, 42, of Atlanta, Georgia, will arraigned later this week before
U.S. Magistrate Judge Linda T. Walker on the charges. Ying was indicted
by a federal grand jury on March 13, 2018. Members of the public are
reminded that the indictment only contains charges. The defendant is
presumed innocent of the charges and it will be the government’s burden
to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI. The U.S. Securities and
Exchange Commission made contributions to the case.
Assistant U.S. Attorneys Christopher J. Huber and Lynsey M. Barron are
prosecuting the case.