The U.S. Securities and Exchange Commission has indicted three people who illegally tipped and traded Equifax securities before the company disclosed a massive data breach. The charged individuals include Ann Dishinger, Lawrence Palmer and Jerrold Palmer.<\/p>\n
Equifax, a provider of consumer credit scores announced in September that it had suffered a massive data breach between mid-May and July. Ahead of the disclosure, the company hired a public relations firm in August 2017 to help handle media requests related to the breach.<\/p>\n
Ann Dishinger worked as a finance manager at the public relations firm contacted by Equifax. She learned of the Equifax breach and tapped her significant other Lawrence Palmer with non-public messages.<\/p>\n
Palmer contacted a former client who arranged the purchase of out-of-the-money Equifax out options. There was an agreement that the client and Palmer would share the trading profits generated.<\/p>\n
Palmer tipped off his brother and business partner Jerrold Palmer, who then contacted a high school friend who arranged the purchase of the same set of out-of-the-money Equifax put options.<\/p>\n
Lawrence Palmer’s former client and Jerold Palmer’s friend made profits of about US$35,000 and US$73,000, respectively.<\/p>\n