Former Equifax Manager Admits to Insider Trading
Former Equifax manager Sudhakar Reddy Bonthu pleaded guilty to insider trading last week, according to the Department of Justice.
Bonthu admitted to purchasing options before the public learned of the massive data breach that had exposed the personal information of more than 145 million Americans and additional individuals abroad.
Bonthu had worked as a software development manager when he and a team were asked to investigate a data breach on August 25, 2017. At that time, the team was not informed the breach was of Equifax itself. By the end of August, Bonthu and his team realized the names and Social Security numbers of more than 100 million people had been exposed.
According to the Justice Department, Bonthu figured out the breach had originated at Equifax and decided to use that knowledge to buy options in Equifax stock before the public announcement. This lead to him making over $75,000 when the price of the stock dropped after the announcement on September 7, 2017.
“Bonthu was privy to nonpublic information pertaining to Equifax’s data breach, and he violated the law when he used that knowledge to enrich himself,” said U.S. Attorney Byung Pak. “Our office will continue investigate and prosecute those who take advantage of their positions for illegal gain.”
Bonthu was the second individual charged with insider trading. Jun Ying, former chief information officer, was charged earlier this year.