LeoVegas MGM Insider Trading News

Breaking news spilling out in regard to three LeoVegas staff arrested for suspected insider trading & leaks after MGM announced is takeover bid. (Photo by Lorenzo Cafaro on Pixabay)

Earlier this week, three people were arrested in Stockholm for insider trading in relation to the MGM Resorts International acquisition of online gaming company LeoVegas.

One of the men was allegedly the “top manager” of the company, while the others were associates of the top manager. The men are suspected of trading in shares with insider information, allegedly generating millions of dollars in profits.

They were also suspected of leaking information about the acquisition to third parties. The three men were arrested and charged with serious insider trading.

According to Swedish Economic Crime Authority (SECA), the three men were involved in insider trading of LeoVegas shares from the beginning of February to the end of April. The share price increased by 40 per cent on the day of the announcement, indicating that the three men may have made millions of dollars in profits from the trading.

They are also suspected of leaking information about the acquisition of LeoVegas to third parties. The two associates of the top manager allegedly helped execute confidential financial transactions, according to SECA.

Does this affect LeoVegas Casino? No. This is a trading scam by a select few individuals, and they have been caught thanks to regulations put in place to spot such actions.

The Swedish Economic Crime Authority

The Swedish Economic Crime Authority began investigating LeoVegas shares before the company announced the acquisition of MGM Resorts International. LeoVegas responded to the investigation, and confirmed that it cooperated with the Authority. However, it is still unclear whether or not the investigation will continue.

MGM Resorts International announced its $607 million bid for LeoVegas in early May. The company also cleared regulatory barriers in October. MGM executives say that LeoVegas is an important partner for the company in non-US markets, and they hope that the deal will soon expand into markets such as Brazil. However, they have yet to comment on the insider trading charges.

Recap of LeoVegas Investigation

  • SECA investigation into three LeoVegas individuals
  • They were arrested for suspected insider trading
  • Investigation is in regard to MGM’s LeoVegas takeover
  • Possible leaked information about the deal to third parties

LeoVegas Confirmed the SECA Has Contacted the Company

LeoVegas has confirmed that it has been contacted by the Swedish Economic Crime Authority (SECA) and is cooperating with the investigation. It was also reported that the company’s top manager was present during the raid in June along with two others, and he maintains his innocence. However, he is accused of engaging in insider trading, which he denies. He also stated that the company has no knowledge of any criminal activity.

The suspect is accused of accumulating LeoVegas shares before the MGM Resorts International acquisition was announced. It is said that he reportedly bought several hundred thousand dollars’ worth of LeoVegas shares before the announcement and then sold them immediately after the announcement. In the meantime, two other people were also arrested, but the details of their involvement are unclear. One of the men was a member of the company’s management team, and the other was an employee of a third party. The two other men are reportedly not connected to LeoVegas.

It is still unclear what the consequences of the insider trading charges will be for LeoVegas. MGM Resorts International announced its bid for the company in early May, and LeoVegas’ board of directors unanimously recommended that shareholders accept the offer. Should the SECA prove the shares were bought and sold with insider knowledge, criminal proceeding will harm the companies immaculate reputation to date.

Image by Mohamed Hassan on Pixabay
  • LeoVegas confirmed SECA has contacted the company
  • Senior manager denies any wrongdoing
  • SECA accuses the trio of buying several shares prior to MGM takeover bid
  • After the MGM takeover bid was announced they allegedly sold the shares
  • Share sales harnessed a considerable profit

Average rating 5 / 5. Vote count: 1

No votes so far! Be the first to rate this post.