SEC charges former Life Time Fitness executive and seven others with inside trading
The Securities and Exchange Commission charged a former vice president of sales at Life Time Fitness Inc., and seven others with insider trading on Friday, alleging they used confidential information to purchase highly speculative out-of-the-money call options and sold them shortly after a newspaper reported the company was in advanced merger discussions with two private equity firms. The traders allegedly sold those options for profits of about $866,209. The SEC alleges that Shane P. Fleming, the Life Time Fitness sales executive learned of the merger discussions on or before Feb. 23, 2015 and tipped his friend and business partner Bret J. Beshey. Beshey allegedly used the information to profit and agreed to split those profits with Fleming. The SEC alleges Beshey tipped his friends Christopher M. Bonvissuto and Peter A. Kourtis with the understanding that both men would kick back a portion of their trading proceeds to Beshey. Kourtis allegedly tipped his friends Alexander T. Carlucci, Dimitri A. Kandalepas, Austin C. Mansur, and Eric L. Weller, and asked for a kickback of any profits they made from trading on the information, which they agreed to do. Weller allegedly gave Kourtis at least 10 pounds of marijuana instead of cash in return for the tip. The U.S. Attorney's Office for the Northern District of Illinois also announced criminal charges against all eight defendants on Friday.
-Francine McKenna; 415-439-6400; AskNewswires@dowjones.com
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