A former executive in the cannabis industry has been charged with insider trading, as detailed in an indictment filed in a federal court in Chicago. The document alleges that Anthony Marsico exploited confidential information from his company to acquire shares of a rival firm, which was secretly involved in acquisition talks.
According to the indictment, Marsico gained access to sensitive information about his company's plans to purchase another cannabis business. Before this deal was made public and while negotiations were ongoing, he reportedly bought over 900,000 shares of the rival company's stock. This resulted in illegal profits amounting to approximately $607,338. Marsico allegedly sold all his shares before it was announced that the acquisition would not proceed.
The indictment further claims that Marsico informed a friend, Arthur Pizzello, about the potential acquisition. This allowed Pizzello to buy shares as well. Pizzello is said to have shared this insider information with two others—Robert Quattrocchi and Timothy Carey—enabling them to invest similarly. The four individuals are described as social friends who played golf together at a private country club.
Charges against these individuals include conspiracy to commit securities fraud for all four defendants: Marsico, aged 39 from Bartlett; Pizzello, aged 61 from Wayne; Quattrocchi, aged 63 from Schaumburg; and Carey, aged 57 from Hanover Park. Additionally, Marsico faces six separate counts of securities fraud. Arraignment dates have yet to be set.
Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, along with Douglas S. DePodesta of the FBI's Chicago Field Office announced the indictment. The U.S. Securities and Exchange Commission has also filed a civil enforcement action against these defendants and provided crucial assistance during investigations led by Assistant U.S. Attorneys Bradley Tucker and Jared Hasten.
It is important to note that an indictment does not serve as proof of guilt; rather it is an accusation requiring substantiation through trial where the government must establish guilt beyond reasonable doubt.