Report: LeoVegas defends its practices as insider trading probe yields arrests
Operator vows to assist authorities as newspaper claims three individuals taken into custody over “criminal suspicion” relating to acquisition by MGM Resorts
LeoVegas has said it will continue to cooperate with Swedish authorities after a Swedish newspaper claimed that a so-called “top manager” within the firm had been arrested on charges of alleged insider trading.
The investigation concerns alleged insider trading relating to its $607m acquisition by MGM Resorts.
Swedish news site Aftonbladet reported the charges levied at the individual and two others, on suspicion of “serious insider trading” between 1 February and 29 April this year.
US casino operator MGM Resorts submitted its nine-figure bid to acquire the Malta-headquartered operator on 2 May. According to Aftonbladet, stock trades were made in advance of the deal’s confirmation.
Responding to an EGR request for comment on the reports, LeoVegas acknowledged certain aspects of the article, but did not confirm the name or job title of the individual, or whether they had been arrested.
“It has come to our attention that an employee within the company has been notified about criminal suspicion regarding the disclosure of insider information,” LeoVegas said in a statement.
“The employee is neither a member of the executive management team nor the board of directors.
“LeoVegas Group takes ethical conduct and regulatory requirements very seriously, and we are committed to upholding the highest standards of integrity and fairness.
“We have and will continue to assist authorities with their ongoing investigation,” the Malta-headquartered operator added.
The statement marks a change in tone from LeoVegas who previously suggested that no employee had been notified of criminal allegations during the preliminary investigation in a statement in June.
Representatives of the Swedish Economic Crime Authority (SECA) raided LeoVegas’ Stockholm office on 7 June in connection with the allegations but made no arrests, with the firm asserting its cooperation with investigators.
Aftonbladet suggested the LeoVegas employee detained was present at the 7 June raid.
Acting on behalf of SECA, chamber prosecutor Pontus Hamilton suggested the individual concerned had shared sensitive public information, leading to trades being made on Friday 29 April, with LeoVegas stock rising by as much as 40% following the deal’s announcement.
According to Aftonbladet, all three individuals arrested by Swedish authorities have denied any wrongdoing relating to the allegations made.
In a statement provided to EGR, a spokesperson for SECA confirmed the arrests were part of an ongoing investigation into the share dealing, but declined to confirm the names of the individuals implicated in the case.