A former accounting manager at Pasadena-based General Finance Corp. (Now United Rentals), allegedly profited nearly $500,000 by purchasing and selling company stocks based on undisclosed details about the company's upcoming acquisition. Yestersay, the U.S. Attorney's Office in the Central District of California released a press statement revealing the indictment of Marco Antonio Perez, a 59-year-old man from Glendora, California.
According to the plea agreement, Perez had access to sensitive data at General Finance Corp., where he worked in a managerial position and reported directly to the company's chief financial officer. In early 2021, Perez learned of the company's pending sale, then worth between $19 and $20 per share, through confidential emails sent to the company's chairman, as mentioned by the press release of U.S. Attorney's Office, Central District of California. The information had not yet been made public.
Between March and April of 2021, Perez purchased 66,585 shares of General Finance at prices ranging from $10 to $12. The Connecticut-based United Rentals announced its acquisition of General Finance for $19 per share on April 15, 2021. Consequently, the company's share price surged from $12.17 to $19, allowing Perez to generate a profit of approximately $488,533 upon selling his shares within two weeks of the announcement.
Furthermore, Perez confessed to unlawfully sharing sensitive information with two other individuals who also traded on the insider information, creating a cumulative profit of $162,007 for the duo.
Perez is currently facing a felony charge for insider trading and may be subjected to a maximum sentence of 20 years in federal prison. Additionally, the United States Securities and Exchange Commission (SEC) has announced civil charges against him, according to the U.S. Attorney's Office, Central District of California.
