Donald G. Blakstad, et al.
California-Based Watch Dealer Charged in Insider Trading Scheme
Litigation Release No. 25186 / August 30, 2021
Securities and Exchange Commission v. Donald G. Blakstad, et al., No. 19-CV-6387 (S.D.N.Y filed July 10, 2019)
The Securities and Exchange Commission announces insider trading charges against Robert J. Maron of Thousand Oaks, California, who generated more than $1 million in profits by trading in the securities of Illumina, Inc. ahead of an October 10, 2016 Illumina financial performance announcement.
The SEC's amended complaint, filed on August 30, 2021 in the United States District Court for the Southern District of New York, alleges that Martha Patricia Bustos, formerly an Illumina accountant, tipped Donald Blakstad in advance of Illumina's October 16, 2016 announcement. Blakstad, in turn, tipped Maron, who purchased Illumina securities and realized more than $1 million in profits. The amended complaint also names Joubin Torkan as a relief defendant, and alleges that Maron gave Torkan $113,833 of Maron's illicit profits. The SEC's initial complaint, filed on July 10, 2019, alleged that Bustos tipped Blakstad about information contained in four Illumina announcements from April 2016 to July 2018, in advance of those announcements. The initial complaint also alleges that, based on those tips, Blakstad tipped others, purchased Illumina securities, and realized approximately $4 million.
On June 28, 2021, Blakstad was convicted on all counts of conspiracy to commit securities fraud and wire fraud, securities fraud and wire fraud in the parallel criminal proceeding filed by the U.S. Attorney's Office for the Southern District of New York. Bustos pled guilty in June 2019. Both Blakstad and Bustos are awaiting sentencing.
The SEC's amended complaint charges Maron with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and names Torkan as a relief defendant for his alleged receipt of ill-gotten gains.
The SEC's investigation was conducted by Patricia A. Paw and Brian R. Higgins of the Philadelphia Regional office and supervised by Brendan P. McGlynn and Scott A. Thompson of the Philadelphia Regional Office. The litigation will be led by Christopher R. Kelly and Jennifer Chun Barry. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.
Last Reviewed or Updated: May 31, 2023