The U.S. Department of Justice announced that Michael Smith, an Idaho executive and former President and Chief Operating Officer of an Idaho-based NASDAQ-listed company, pleaded guilty to one count of securities fraud for insider trading based on material nonpublic information about an impending corporate acquisition. By at least June 2024, Smith received material nonpublic information about the acquisition through his role and was subject to the company’s insider trading policy prohibiting trading while in possession of such information. On July 26, 2024, he bought company shares using a brokerage account belonging to a close personal associate, and after the acquisition became public on August 7, 2024 and the stock rose by nearly 50%, he sold the shares the next day for a profit of approximately USD 145,754.69 to benefit that associate. Smith faces a maximum penalty of 20 years’ imprisonment, with sentencing to be determined by a federal district court judge; the U.S. Postal Inspection Service Criminal Investigations Group is investigating.
U.S. Department of Justice 2025-11-18
U.S. Department of Justice announces guilty plea by former public company president and COO in acquisition-related insider trading case
The U.S. Department of Justice announced that Michael Smith, a former executive of a NASDAQ-listed company, pleaded guilty to securities fraud for insider trading. Smith used material nonpublic information about a corporate acquisition to trade shares, resulting in a profit of approximately USD 145,754.69. He faces a maximum penalty of 20 years' imprisonment, with sentencing pending.