PROFESSOR POCKETS $360K FROM SECRET STOCK TIP! Insider Trading Scandal Rocks University!

SEC v. Gabriel Rebeiz — U.S. Securities and Exchange Commission Litigation Release No. 26231, dated January 21, 2025.

The SEC charged Gabriel Rebeiz, a technical consultant and university professor, with insider trading. Rebeiz used material non-public information obtained through his role on Resonant Inc.'s Technical Advisory Committee to purchase shares before an acquisition announcement. He profited $360,673 from the trades and settled with the SEC, agreeing to pay disgorgement, prejudgment interest, and a civil penalty.

In Plain English

Imagine you're a consultant for a company and learn a secret: another company is going to buy it soon. You're not supposed to know this secret. You buy a lot of the company's stock right before the secret is announced. When the news comes out, the stock price jumps, and you sell your shares for a big profit. This is insider trading, and it's illegal.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Access to Confidential Information Gabriel Rebeiz, an electrical engineering professor and technical consultant, served on Resonant Inc.'s Technical Advisory Committee. In this role, he had access to proprietary information about Resonant's technology.
2. Encouraging a Sale Rebeiz was impressed by Resonant's technology and actively encouraged Resonant executives to sell the company over several months.
3. Hint of Impending Acquisition On January 19, 2022, Rebeiz spoke with a senior Resonant executive who allegedly made a statement suggesting an impending acquisition.
4. First Purchase of Shares The very next day, January 20, 2022, Rebeiz purchased 60,000 shares of Resonant stock, acting on the non-public information.
5. Additional Share Purchases Over the following weeks, Rebeiz continued to purchase an additional 60,000 shares of Resonant stock, increasing his total position.
6. Acquisition Announcement On February 14, 2022, Murata Manufacturing Ltd. announced its acquisition of Resonant Inc.
7. Stock Price Surge Following the announcement, Resonant's stock price increased by a significant 257%.
8. Realizing Illegal Profits Rebeiz sold his shares, realizing illegal trading profits totaling $360,673 from his insider trading activities.

The Enforcement Action

On January 21, 2025, the SEC filed settled charges against Gabriel Rebeiz for insider trading. Rebeiz, a technical consultant and professor, traded on material non-public information obtained through his role on Resonant Inc.'s Technical Advisory Committee. He purchased 120,000 shares of Resonant stock after receiving a tip about an impending acquisition. Following the announcement, Resonant's stock price rose 257%, yielding Rebeiz $360,673 in illegal profits. Without admitting or denying the allegations, Rebeiz consented to a final judgment permanently enjoining him from violating securities laws, ordering him to pay $360,673 in disgorgement plus $65,560.25 in prejudgment interest, and imposing a $360,673 civil penalty. He is also prohibited from serving as an officer or director of a public company for five years. The judgment is subject to court approval.

Named in this action: Gabriel Rebeiz.

Original SEC litigation release ↗ · Browse all cases