SEC Charges Three Southern California Siblings with Insider Trading

The Securities and Exchange Commission (SEC) has officially filed charges against three siblings residing in Southern California – Marco A. Perez (known as Marc), Pedro Perez, Jr. (known as Peter), and Olivia P. Durbin – for insider trading activities that took place prior to the April 2021 announcement of a proposed acquisition by storage firm United Rentals Inc. of General Finance Corp. These individuals collectively earned approximately $650,000 in illicit profits from their trading activities.

According to the SEC’s complaint, Marco Perez, formerly an accounting manager at General Finance, became aware in late February 2021 of United Rentals’ interest in acquiring General Finance. Allegedly, Marco Perez initiated the purchase of General Finance shares and continued doing so as he gained information about the progress of the acquisition. The complaint further asserts that Marco Perez informed Pedro Perez and Durbin of this development and encouraged them to buy General Finance shares, even stating to Pedro Perez that he was “all in.” Consequently, Pedro Perez and Durbin also acquired General Finance shares. Following the announcement of the acquisition by United Rentals, General Finance’s share price surged from $12.17 to $18.95, with trading volume skyrocketing by 19,000 percent. The defendants then sold or tendered their shares, ultimately generating combined profits of $650,000.

Katharine E. Zoladz, Co-Acting Regional Director of the SEC’s Los Angeles Regional Office, commented on the case, stating that Marco Perez had blatantly disregarded his duty to avoid exploiting confidential, nonpublic information entrusted to him by his former employer. Zoladz emphasized the SEC’s commitment to pursuing and prosecuting insider trading violations, holding company insiders accountable for their actions.

The SEC’s complaint, lodged in federal court in the Central District of California, accuses the defendants of violating the antifraud provisions of federal securities laws. While neither admitting nor denying the SEC’s allegations, Marco Perez has consented to a partial judgment, pending court approval, that permanently enjoins him from violating the antifraud provisions of federal securities laws, orders him to disgorge ill-gotten gains with prejudgment interest, and imposes a civil penalty whose amount will be determined. Additionally, it enforces a five-year officer and director bar on him. Pedro Perez, without admitting or denying the SEC’s claims, has consented to a judgment, subject to court approval, that permanently enjoins him from violating the antifraud provisions of federal securities laws, orders him to disgorge $141,251.79 in profits with prejudgment interest and pay a civil penalty of $127,142.32. He is also subject to a five-year officer and director bar. Durbin, without admitting or denying the SEC’s allegations, has consented to a judgment that permanently enjoins her from securities fraud, mandates the payment of $38,638.28 in disgorgement with prejudgment interest, and imposes a civil penalty of $34,867.17.

Furthermore, the U.S. Attorney’s Office for the Central District of California has concurrently announced securities fraud charges against Marco Perez in a parallel action.