The SEC’s complaint, filed in the Northern District of Georgia, states that Equifax engaged a Chicago-based public relations firm in August 2017 to assist with handling the inquiries expected to be generated by the announcement of the intrusion and breach. According to the complaint, Ann M. Dishinger, who worked as a finance manager at the public relations firm, learned about the Equifax breach through her position and tipped her significant other, Lawrence M. Palmer (L. Palmer), with the nonpublic news. The SEC alleges that L. Palmer then contacted a former business client and arranged for the client to purchase out-of-the-money Equifax put options in the client’s brokerage account with the understanding that the client and L. Palmer would split any trading profits obtained. The complaint also alleges that L. Palmer later reimbursed the client by check for the purchase cost of the options, scribbling in the check’s memo line the words, “Blue Horseshoe,” an apparent reference to the coded language used to convey inside information in the 1987 movie Wall Street….
‘Enforcement 40’ for 2020
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