Schaumburg Man, Cannabis Exec Pal Charged With Insider Trading: Feds

SCHAUMBURG, IL — A group of friends, including a Schaumburg man, are being charged with insider trading. According to an indictment returned in federal court in Chicago, Anthony Marsico, 39, of Bartlett, a former cannabis executive, was reportedly using insider information obtained from his employment to purchase shares of a rival cannabis company that was privately the target of an acquisition.

Marsico, along with Arthur Pizzello, 61, of Wayne; Robert Quattrocchi, 63, of Schaumburg; and Timothy Carey, 57, of Hanover Park; were charged with conspiracy to commit securities fraud. Marsico was also charged with six individual counts of securities fraud. Arraignments in federal court in Chicago have not yet been scheduled.

Prosecutors said prior to the public announcement of the agreement, and while the two companies were privately negotiating the proposed acquisition, Marsico used the information to purchase more than 900,000 shares in the rival company's stock, which resulted in illegal profits of approximately $607,338. Marsico later sold all the stock before it was publicly announced that the potential acquisition was canceled, the indictment states.

While the proposed acquisition was still pending, authorities said Marsico tipped off a friend, Pizzello about the potential acquisition. The information allowed Pizzello to also buy shares in the rival company, the indictment states. Pizzello, in turn, passed on Marsico's information to two others, Quattrocchi and Carey. This allowed the group, who were social friends and played golf together at a private country club, to purchase the rival company's stock.