A former accounting manager at a Pasadena-based company is headed to the slammer for insider trading. Marco Antonio Perez, a 60-year-old from Glendora known as "Marc Perez," was sentenced today to nine months in federal prison for snatching nearly half a million dollars in profits by exploiting confidential information, the Justice Department reported.
As an accounting manager at General Finance Corp., Perez had direct access to the company's sensitive information. He abused this privilege by buying over 66,000 shares knowing that an acquisition was on the horizon, which would hike up the share price. Once the acquisition was public, Perez dumped the shares for a tidy profit, according to court documents. United States District Judge Fernando L. Aenlle-Rocha also slapped Perez with a six months’ home detention post-prison.
Perez didn't keep the shady deal to himself. The DOJ noted that he tipped off at least two other individuals who acted on the tip and pocketed substantial profits. In insider trading's classic betrayal of trust, Perez lined his pockets by purchasing the company’s stock for prices between $10 and $12, well under the acquisition price.
General Finance's sale to United Rentals Inc., a major player in the equipment rental biz, was the cornerstone of Perez's scheme. Following the acquisition announcement, the share price soared from $12.17 to $19 per share overnight, the Justice Department highlighted. It was then that Perez sold off all his shares, riding the price surge to a windfall of roughly $488,533.
The story doesn't end with Perez's upcoming stint behind bars. The Securities and Exchange Commission has their own beef with the former manager, having secured a judgment for disgorgement and penalties for his illicit gains. FBI sleuths dug into the case, leading to Perez's criminal conviction.
Assistant United States Attorneys Ranee A. Katzenstein and Steven M. Arkow prosecuted the case. For more details, Ciaran McEvoy, a Public Information Officer, can be contacted, or refer to the DOJ's announcement.
