A former executive for multi-state cannabis operator Verano has been indicted on insider trading charges.
According to the Chicago Tribune, Anthony Marsico is accused of using insider information to make $607,000 by buying stock in Vireo, formerly Goodness Growth.
Verano and Vireo had formerly planned to merge but the deal fell through. The companies are still locked in a legal battle over the failed arrangement.
Marsico is accused of conspiring with three of his golf buddies after learning in 2021 that Verano intended to acquire Vireo.
But Marsico’s lawyers said he has a history of investing in the cannabis space and that his Vireo stock purchase was solely based on public information.
Verano and Vireo announced their potential merger in early 2022 but called it off by October of that year.
Verano accused Vireo of contract breaches, while Vireo accused Verano of “repudiating the arrangement agreement to avoid fulfilling its obligations.”