20.07.2009

Six charged with insider trading

Six individuals have been charged by the Securities and Exchange Commission (SEC) for insider trading during the acquisition of US rental company NEFF by Odyssey Investment Partners in 2005.

The six have been accused of buying stock in Miami's Neff Corp. shortly before the acquisition was announced and benefiting to the tune of over $1.5 million. .

Miami child psychiatrist Sebastian De La Maza is alleged to have learned of the deal through ''constant contact'' with his daughter, Vivian Mas, wife of Juan Carlos Mas - Neff's chief executive at the time. Neither Mas nor his wife have been charged in the civil complaint. De La Maza, 71, allegedly made a $84,000 profit when the deal closed.

In another instance, Miami lawyer Thomas L. Borell is accused of buying shares while on a vacation with longtime friend Jose Mas, a Neff director at the time and the brother of Juan Carlos Mas. Jose Mas has not been accused of any wrong doing. Borell, 48, made a $974,859 profit on the shares according to the SEC.

Glenn Gordon, the SEC's associate regional director, said the defendants "took advantage of personal relationships to defraud the market This case should send a message to people considering insider trading: Don't do it,''

Also named in the suit is Alberto J. Perez, who managed real estate projects for the Mas brothers. The suit alleges Perez had an office in Neff's headquarters and access to confidential information on the deal. Perez, 31, along with his brother Jose G. Perez, 34, both of Miami, The pair are alleged to have turned a $399,000 profit on the trades.

A Lawyer and accountant who worked on Neff’s tax returns are also accused of having profited form insider knowledge, Kevan D. Acord, 49, of Kansas is alleged to have made a $7,719 profit for himself and a $146,572 profit for an unnamed client, While accountant Philip C. Growney, 44, of Missouri, is said to have made a $12,594 profit.

The SEC wants the six individuals to turn over the profits they are alleged to have made and to pay civil penalties. All defendants vehemently deny any wrongdoing and are fighting the allegations.