By Chicago Times Magazine –
January 21, 2025
A former cannabis executive has been indicted on charges of insider trading after allegedly using confidential information to profit from a proposed acquisition, according to an indictment returned Thursday in federal court in Chicago.
The indictment accuses Anthony Marsico, 39, of Bartlett, Ill., of obtaining non-public information about his company’s planned acquisition of a rival cannabis company. While the two companies were in private negotiations, Marsico allegedly purchased over 900,000 shares of the rival company’s stock, generating illegal profits of approximately $607,338. He later sold all the shares before the potential acquisition was publicly announced as canceled, the indictment states.
The indictment further alleges that Marsico tipped off his friend, Arthur Pizzello, 61, of Wayne, Ill., about the pending acquisition. Pizzello then allegedly shared the information with two other friends, Robert Quattrocchi, 63, of Schaumburg, Ill., and Timothy Carey, 57, of Hanover Park, Ill. All four men, described as social friends and golfing partners at a private country club, allegedly used the inside information to purchase shares in the target company.
Marsico is charged with one count of conspiracy to commit securities fraud and six counts of securities fraud. Pizzello, Quattrocchi, and Carey are each charged with one count of conspiracy to commit securities fraud.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission (SEC), which has filed a separate civil enforcement action against the defendants, provided assistance in the investigation. Assistant U.S. Attorneys Bradley Tucker and Jared Hasten are prosecuting the case.
Arraignments for the defendants have not yet been scheduled in federal court.
