Long after Equifax was breached by hackers, but before they told anyone else about it, some of its top execs sold off millions of dollars in stock, getting out before the stock tanked which would be blatantly illegal if the execs in question knew that the company had been breached.
While there's been an exodus of top Equifax "talent" (two IT execs "retired", as did CEO Richard Smith, who collected $90M for his final year), one guy who's still occupying an office on executive row is the company's senior counsel, John Kelley.
Kelley seems like he'll be the lynchpin of the criminal proceedings for insider trading. He was personally responsible for approving any executive stock sales and signed off on the execs who cashed out after the breach, and he also ran the company's cybersecurity efforts (which were spectacularly bad), meaning he either knew about the breach -- the most significant fact about the company's security! -- or he was unimaginably bad at his job.
The WSJ reports that Equifax contends that the executives who sold the shares were unaware of the breach when they made that decision. Sources note that the three executives had not been involved in meetings about the breach.
However, the shares were sold Aug. 1 and Aug. 2, just days after the breach was uncovered by security staff on July 29.
It’s unclear if Kelley was informed of the breach on that day. If he was aware of the issue and then approved the share sales that would be troublesome.
For this reason, Equifax’s board has opened its own inquiry into Kelley’s role and knowledge of the hack.
The Equifax Executive Who Oversaw Security Also Approved Last-Minute Stock Sales
The largest, wealthiest cities in America are filling up with tent cities -- especially on the west coast, where East Coast style right-to-shelter laws are rare -- and if the spectacle of human misery doesn't alarm you, perhaps you should be thinking about communicable disease epidemics.
United Airlines and American Airlines have signalled the end of their participation in Trump's practice of kidnapping children to scare away potential asylum seekers, (AA: "We have no desire to be associated with separating families, or worse, to profit from it"; UA: "Our company’s shared purpose is to connect people and unite the world. This […]
Ibrahim Diallo was eight months into a three year contract with a big company when its systems abruptly decided that he was fired: first it told his recruiter that he'd been let go, then it stopped accepting his pass for the parking and the turnstyles, then his logins stopped working, and at each turn, his […]
Projects big and small always go smoother when the whole team is collaborating, but members tend to get lost once the conference call ends. Timelinr is a project management solution that helps keep your stakeholders, team, and clients in the loop with high-level project roadmaps and granular task boards. Subscriptions are available today for $49.99. […]
The Adobe Creative Cloud is home to a suite of editing tools today’s creatives count on to produce their content. Whether you’re an aspiring photographer, animator, or graphic designer, Adobe’s programs can help you in your creative pursuits, and with the Complete Adobe CC Training Bundle, you can come to grips with six of them for […]
Your pet might be photogenic, but getting them to stare long enough at your camera to snap that Instagram-worthy photo isn’t as simple as telling them to sit. Bribing your pets with their favorite treat, however, might just do the trick, and with the Adjustable Pet Selfie Smartphone Attachment, you can do just that while getting […]