The former software development manager is alleged to have profited more than $75,000
A former software development manager at Equifax has admitted to engaging in insider trading linked to the company’s 2017 data breach that exposed the personal information of about 148 million consumers, according to a Reuters report.
Sudhakar Bonthu pleaded guilty to one count of insider trading in federal court in Atlanta. He was alleged to have made a profit of more than $75,000 from the illegal transaction.
Suspicious activity led Equifax to begin an investigation into a consumer data breach in July 2017. By August 2017, the company determined that data had likely been stolen. Equifax saw its stock price drop following the disclosure of the cyber attack after markets closed on Sept. 7.
Bonthu worked for a unit that developed security products for Equifax clients. He was assigned, along with other employees, to assist in responding to the breach. However, Bonthu was not informed that the company itself was breached.
Bonthu later determined that Equifax has been breached and that the attack exposed the data of at least 100 million consumers. Prosecutors alleged that he purchased put options in its stock before the breach was announced through the brokerage account of his wife. As a result, Bonthu profited when the price of Equifax stock dropped.
Bonthu’s counsel, Meg Strickler, confirmed the plea but did not make further comments. Bonthu is set to be sentenced on Oct. 18.
Jun Ying, a former technology executive with the company, is facing a separate insider trading case. Ying has pleaded not guilty.
