A former cannabis executive has been charged with securities fraud after using insider information to illegally profit from the acquisition of a rival cannabis company, the U.S. Attorney’s Office for the Northern District of Illinois announced today.
Anthony Marsico, 39, of Bartlett, Illinois, was employed as the executive vice president at a Chicago-based cannabis company, referred to as “Company A.” During his tenure, Marsico had access to confidential details about the company’s negotiations to acquire “Company B,” a Minneapolis-based rival.
Marsico, along with three accomplices—Anthony Pizzello, 61, of Wayne, Illinois; Robert Quattrocchi, 63, of Schaumburg, Illinois; and Timothy Carey, 57, of Hanover Park, Illinois—allegedly conspired to commit securities fraud by trading on this insider information.
Marsico purchased more than 900,000 shares of Company B’s stock while the acquisition was still under private negotiation, well before any public announcement. This resulted in illegal profits of approximately $607,338. After selling the stock, Marsico profited from the timing, as the acquisition was eventually canceled and the stock’s value decreased.
Marsico reportedly shared the confidential details with Pizzello, who then passed the information to Quattrocchi and Carey. All four defendants, who were reportedly close friends and regular golf companions at a private country club, allegedly conspired to use the insider information to their advantage.
In addition to conspiracy charges, Marsico faces six individual counts of securities fraud. The case highlights the ongoing efforts of the U.S. Attorney’s Office to combat insider trading in various sectors, including the growing cannabis industry.
