Equifax stock sales spark DOJ investigation for insider trading

For Equifax, things are about to get worse. According to various reports, the US Department of Justice (DOJ) had initiated a criminal investigation into stock sales of officials of Equifax just before the release of the announcement regarding the security breach that exposed information from 143 million consumers in the United States. Equifax CFO John Gamble, President of Workforce Solutions Rodolfo Ploder, and President of US Information Solutions Joseph Loughran dropped nearly $1.8 million in stock briefly after the firm detected the breach and about a month prior to its announcement. Equifax said that the three did not know about the breach when they sold their stocks.

To see if the move involves insider trading, The Securities and Exchange Commission (SEC) is also examining the said sales and what the executives knew beforehand. Bloomberg’s sources reveal that the investigation of the DOJ will work together with the SEC’s. They say that the said investigation will be headed by US prosecutors in Atlanta. The said agencies are joined by the Federal Trade Commission (FTC), which is also investigating the breach. Last week, many senators sent letters to the SEC, the FTC, and the DOJ asking investigations into possible insider trading.

Many are looking into this breach. Two executives have already left the firm, although Equifax states that they retired. Late last week, Chief Information Officer David Webb and Chief Security Officer Susan Mauldin left the company.