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Date: 04-17-2019
Case Style:
United States of America v. Eric Weller
Case Number: 1:17-cr-00643
Judge: Matthew F. Kennelly
Court: United States District Court for the Northern District of Illinois (Cook County)
Plaintiff's Attorney: John D. Mitchell and Jason Yonan
Defendant's Attorney: Cynthia Louise Giacchetti, Allan A. Ackerman, Cindy Giacchetti
Description:
Chicago, IL - Federal Jury in Chicago Convicts Southern California Man of Participating in Insider Trading Conspiracy
A federal jury in Chicago convicted a Southern California man of participating in an insider trading conspiracy that used inside information about an impending corporate acquisition to earn trading profits.
ERIC WELLER, 54, of Hermosa Beach, Calif., was found guilty Tuesday of one count of conspiracy to engage in insider trading. The jury acquitted Weller on three counts of securities fraud.
The conviction is punishable by a maximum sentence of five years in prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
Weller was among nine defendants charged as part of the federal investigation. Five defendants pleaded guilty to the conspiracy charge prior to trial and are awaiting sentencing. Three other defendants entered into deferred prosecution agreements after admitting their roles in the conspiracy and cooperating with the government’s investigation.
Evidence at trial revealed that a vice president of corporate sales at Minnesota-based Life Time Fitness Inc. obtained material, non-public information about the potential sale of the company in 2015. The executive knew that a sale would likely cause an increase in the company’s stock price, and the executive shared the inside information with a longtime friend so that the friend could trade and profit. The friend shared the information with three co-conspirators, one of whom then shared it with Weller and three others.
After receiving the material, non-public information, Weller purchased Life Time Fitness securities before news of the potential sale became public via a media report. The report caused the stock price to increase substantially. During a three-week period, the defendants earned more than $860,000 in illegal profits from the trades, including more than $550,000 earned by Weller.
Charges:
CONSPIRACY TO DEFRAUD THE UNITED STATES
(1)
MANIPULATIVE AND DECEPTIVE DEVICES AND 78ff(a), AND 17:240.10b-5, AND 18:2
(2)
MANIPULATIVE AND DECEPTIVE DEVICES AND 78ff(a), AND 17:240.10b-5, AND 18:2
(5-6)
MANIPULATIVE AND DECEPTIVE DEVICES AND 78ff(a), AND 17:240.10b-5, AND 18:2
(8-10)
Outcome: 04/16/2019 253 JURY Notes as to Eric Weller (Restricted). (yap, ) (Entered: 04/17/2019)
04/16/2019 254 ORDER as to Eric Weller (6): Jury deliberations completed on 4/16/2019. The jury finds defendant Eric Weller guilty on Count 1 of the indictment and not guilty on Counts 3,4, and 7 of the indictment. Any post-trial motions shall be filed by 5/21/2019. Case is referred to the Probation Office for preparation of a presentence report. Sentencing hearing set for 7/10/2019 at l:30 p.m. Government's version of the offense is to be submitted by 4/30/2019. Defendant's version, if any, is to be submitted by 5/5/2019. Presentence report is to be filed by 6/4/2019. Government's sentencing memorandum is to be filed by 6/26/2019. Defendant's sentencing memorandum is to be filed by 7/3/2019. The Probation Office is directed to disclose their recommendations to both sides. Status hearing is set for 5/23/2019 at 1:30. Defendant's appearance is waived for the 5/23/2019 status hearing. Signed by the Honorable Matthew F. Kennelly on 4/16/2019. Mailed notice (yap, ) (Entered: 04/17/2019)
04/16/2019 255 ORDER as to Eric Weller (6): The attachment is the correlation of the counts between the jury indictment and the indictment (Attachment). Signed by the Honorable Matthew F. Kennelly on 4/16/2019. Mailed notice (yap, ) (Entered: 04/17/2019)
04/16/2019 256 JURY Verdict as to Eric Weller (6) guilty on Count 1. Eric Weller (6) not guilty on Count 3-4,7. Verdict form emailed to defendant's counsel of record as to Eric Weller (RESTRICTED.) (yap, ) (Entered: 04/17/2019)
Plaintiff's Experts:
Defendant's Experts:
Comments: