Verano’s ex-executive faces insider trading charges in indictment

A former executive at Verano, a prominent cannabis company based in Chicago, has been indicted on allegations of insider trading. Anthony Marsico, at 39, from Bartlett, is accused of illegally profiting approximately $607,000 by trading stocks in another cannabis company that Verano intended to acquire. Although the deal with Minneapolis-based Goodness Growth Holdings Inc., now Vireo Growth Inc., did not materialize, legal battles are ongoing between the two companies.

Marsico’s legal team, consisting of Todd Pugh and Patrick Blegen, vehemently deny the charges, stating that their client has a longstanding history of investing in the cannabis financial sector using only public information. The indictment reveals that Marsico colluded with three acquaintances from a private country club to execute the unlawful scheme. Among the indicted individuals are financial adviser Arthur Pizzello, Jr., corporate executive Robert Quattrocchi, and Timothy Carey, all of whom have been implicated in the plan.

In particular, Pizzello, a co-owner of the country club and a former financial adviser, had investments in Verano even before its initial public offering in 2021. The group, which shared close personal ties and socialized frequently, engaged in calls, texts, and recreational activities like golfing and gambling. According to court documents, Marsico, formerly with a predecessor of Verano, held a senior position within the company, overseeing government relations and real estate operations.

The illicit plot was concocted in December 2021, following Marsico’s discovery of Verano’s interest in acquiring Goodness Growth. To capitalize on this information, Marsico set up a brokerage account and purchased over 900,000 shares of Goodness Growth stock through hundreds of transactions totaling approximately $1.5 million in the Canadian market. When the acquisition was announced in February 2022, Goodness Growth’s stock price surged by 42%, leading to Marsico’s substantial profits.

Acknowledging the termination of the acquisition agreement in October 2022, Verano emphasized its strict adherence to securities regulations and disavowed any connections to Marsico’s alleged misconduct. The company, which operates numerous cultivation facilities and retail stores across the country, reassured stakeholders that the former employee’s actions had no significant impact on its operations.

The legal proceedings against Marsico and his associates underscore the serious consequences of insider trading within the cannabis industry. As the case unfolds, it sheds light on the importance of upholding ethical standards and regulatory compliance in the rapidly expanding marijuana sector. Despite the allegations, Verano remains committed to maintaining its integrity and upholding legal standards within the cannabis market.