The aftermath of the breach of Heartland Payment Systems card data security systems appears to have hit some of its executives in their wallets.
The payments processor, whose 2008 breach may have compromised the most card numbers ever, announced yesterday that its CEO, Robert Carr, his wife and one of the company executives were being forced to sell some of the company's stock they had placed as security for loans.
The company announced that Carr and his wife were forced to sell over 692,000 shares of the company's stock to meet obligations under a loan for which the shares were pledged as security, the company said. Heartland's chief sales officer, Sanford Brown, was also expected to have to sell stock for the same reason, the company said.
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"I am extremely disappointed about this involuntary sale of my stock. This forced sale is precipitated by the mix of extraordinary circumstances confronting Heartland and the recent drop in its stock price," Carr said.
"Unfortunately, I had no ability to stop the sales by my lender. Together with my wife, I have been one of the company's largest shareholders since its inception, and I acquired additional shares of stock in 2006 as an expression of my confidence in the company's potential. This sale initiated by my lender does not in any way reflect my view of the company's value and future performance potential. My confidence in Heartland remains strong, and I am enthusiastic about reestablishing my ownership position in the company over the months and years to come," he added.
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