SEC Charges Siblings for Insider Trading Ahead of United Rentals Acquisition of General Finance

The SEC recently filed charges against three siblings residing in Southern California—Marco A. Perez, Pedro Perez, Jr., and Olivia P. Durbin—for insider trading regarding the April 2021 announcement of United Rentals Inc.'s offer to acquire General Finance Corp. According to the SEC's complaint, Marco Perez, a former General Finance accounting manager, learned in late February 2021 of United Rentals' interest in acquiring General Finance and began purchasing their shares. He subsequently tipped off Pedro Perez and Durbin and encouraged them to buy as well. When the acquisition was announced, General Finance's share price rose dramatically which allowed the defendants to sell or tender their shares for a combined profit of $650,000. As a result, all three suspects have been charged with violating the antifraud provisions of the federal securities laws. Marco Perez has consented to a partial judgement subject to court approval, including permanent injunction, payment of disgorgement with prejudgment interest, and a five-year officer and director bar. Pedro Perez and Durbin have also agreed to similar judgements. The SEC's investigation is being conducted by Roberto Tercero, supervised by Finola H. Manvelian, and assisted by the Financial Industry Regulatory Authority, the Federal Bureau of Investigation, and the U.S. Attorney's Office for the Central District of California.