LeoVegas manager arrested for inside trading linked to MGM deal

Swedish authorities have announced the arrests of three individuals who are allegedly involved with insider trading linked to the acquisition by MGM Resorts International of LeoVegas, a Swedish gaming brand. The news was reported by Aftonbladet, a local media outlet and detailed the arrest as well as the motivation behind it.

One of the three people detained is said to have held a management position with the Swedish gambling giant and may have used their position to benefit ahead of the takeover back in August. The other two people were not related to LeoVegas, authorities said, but they have benefited from the third person’s knowledge about sensitive information.

An investigation was triggered by the Swedish Economic Crime Authority this summer, when the watchdog found it suspicious that LeoVegas shares began selling at a strong pace just ahead of the acquisition announcement, which had not been shared with the public.

Company shares increased their value by 40% right after MGM Resorts International revealed its intention to purchase the company, making a good profit for anyone who had purchased stock in the build-up before the announcement.

Swedish authorities targeted LeoVegas’ Stockholm offices, but no immediate evidence of wrongdoing could be established. LeoVegas firmly denied any inside trading and said that none of its employees, senior management, or executives were in any way related to the suggested crime when the first suspicions were raised.

However, the Swedish Economic Crime Authority continued to work the case and the investigation may have indeed yielded some results. The suspects are said to have been engaged in inside trading between February and April, and just until the official announcement was made that MGM Resorts International would be attempting to buy out LeoVegas.

However, the LeoVegas employee has vehemently denied wrongdoing and argued that they expected the authorities to soon reach a favorable conclusion which would show that they are innocent. So far, the Swedish Economic Crime Authority has made no further allegations against LeoVegas employees, and the company itself confirmed that the person in question was not part of its board or management team, LeoVegas director of communications and public affairs Daniel Valiollahi informed.

LeoVegas has been particularly active when it comes to fighting problem gambling, with the company teaming up with the Karolinska Institutet, and offering the research facility a look behind the curtain by providing previously untapped data by researchers. LeoVegas remains committed to tackling problem gambling in all of its forms and has vowed to reduce its revenue from harmful gambling. This course will now be maintained under MGM Resorts International.

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