Senators press for answers on Equifax executives who sold stock after breach

Senators press for answers on Equifax executives who sold stock after breach
© Victoria Sarno Jordan

The Senate Finance Committee wants answers from Equifax on when three of its executives, who sold almost $2 million in stock, learned of a massive cybersecurity breach the company experienced in July.

The sale has raised eyebrows among some observers who are concerned about potential insider trading violations.

Committee leaders Sen. Orrin HatchOrrin Grant HatchMeet Washington's most ineffective senator: Joe Manchin Lobbying world Congress, stop holding 'Dreamers' hostage MORE (R-Utah) and Sen. Ron WydenRonald (Ron) Lee WydenDemocrats calls on Biden administration to ease entry to US for at-risk Afghans Schumer opted for modest rules reform after pushback from moderates Sanders, 50 Democrats unveil bill to send N95 masks to all Americans MORE (D-Ore.) pressed Equifax CEO Richard Smith for details on the scope of the breach in which the data of 143 million Americans was compromised, who is affected by it and actions Equifax is taking to mitigate its impacts.

Hatch and Wyden then pressed for specifics on when three executives were notified of the cyberattack.

Equifax Chief Financial Officer John Gamble and president of U.S. information solutions Joseph Loughran collectively sold shares and exercised stock options totaling approximately $1.5 million on Aug. 1. Rodolfo Ploder, president of workforce solutions, sold approximately $250,000 worth of stock on Aug. 2. Details of the hack, which occurred on July 29, were not yet made public at that time.

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The sales were not a part of the trio’s prescheduled trading plans that insiders often use when buying and selling equity.

Equifax has said that Gamble, Loughran and Ploder were not notified of the breach when they opted to sell shares and exercise options.

The timing has raised suspicion among some skeptics. When asked by The Hill on Friday if they would investigate the matter for potential insider trading, the Securities and Exchange Commission declined to comment.

Hatch and Wyden join Senate Commerce Committee leaders, Sens. John ThuneJohn Randolph ThuneSchumer opted for modest rules reform after pushback from moderates Manchin chides Democrats over filibuster, saying he can't support 'such a perilous course' Democrats make final plea for voting rights ahead of filibuster showdown MORE (R-S.D.) and Bill NelsonClarence (Bill) William NelsonOvernight Energy & Environment — Earth records its hottest years ever Global temperatures in past seven years hottest ever observed, new data show NASA welcomes chief scientist, senior climate adviser in new dual role MORE (D-Fla.) along with Sen. Brian SchatzBrian Emanuel SchatzEight senators ask Biden to reverse course on Trump-era solar tariffs The Hill's 12:30 Report: More of Biden's agenda teeters on collapse The Hill's Morning Report: Biden takes it on the chin MORE (D-Hawaii) who penned letters to Equifax demanding more answers on the hack. Both the House Energy and Commerce and Financial Services committees have also announced hearings to examine the breach further.