For CNBC's Jim Cramer, insider trading is no joke.
"The moment a company's management finds out that it possesses material non-public information, they must immediately close the window on insider selling. Otherwise, the chance is way too great that some executive will take advantage of that inside information and dump stock, which may have happened at Equifax," the "Mad Money" host said.
So as federal prosecutors reportedly look into why three Equifax executives sold almost $2 million worth of the company's shares just days after Equifax underwent a massive cybersecurity breach, Cramer called on the Securities and Exchange Commission to investigate.
Management learned of the breach, which put information from over 145 million consumers at risk, on July 29. Equifax's general counsel should have been advised to close the trading window "immediately," Cramer said.
But Richard Smith, then-CEO of Equifax, testified to Congress that he didn't tell his board about the breach for almost three weeks.