LeoVegas CEO is suspected of serious insider crime

It all started back in May when the hotel chain MGM made a billion-dollar bid on the gaming company LeoVegas , something that could then be read as a fun and exciting news. But in June we learned that ekobrottsmyndigheten thus had suspicions of insider crimes regarding this deal.

"The man allegedly leaked information that a billion bid”

After the police raid had taken place, no one was served with suspicion of any crime, but the investigation has continued. And today we can read that one of the top managers of the gaming company is suspected of an insider crime regarding the deal. The whole point is that the man allegedly leaked information that a billion dollar bid was underway, something that would lead to the stock also rushing up in price.

That a stock quickly rises in price when a million bid on the company is presented is nothing strange. What prompted ekobrottsmyndigheten to turn on the warning drum was that it could be seen that some suspicious share purchases had taken place just days before the bid was announced. Which, of course, led to a substantial profit for these particular stock buyers.

Head of detention

Yesterday, three people were arrested on suspicion of insider crimes in the tangle. One of the detainees is the aforementioned top manager at LeoVegas. The other two men should have no connection to the bookmaker.

Is the heyday of LeoVegas over?

Of course, what many are now asking themselves is how this will affect the bookmaker. LeoVegas is one of the biggest players in the casino industry and has won many awards. Trust in the casino is great, but the question is whether it will remain so?

After the summer police raid, there was no major drop in the number of players at LeoVegas, and the topic of conversation was rather about how to do with their LeoVegas shares. While the stock market rose, LeoVegas shares fell in price after the news was discovered. Since the sale to MGM was completed, LeoVegas was delisted on the Stockholm Stock Exchange in november and there is therefore no LeoVegas share to take into account today.

Daniel Valiollahi, head of press at LeoVegas, points out that they are putting a hard$off and that since the police raid this summer they are working with authorities to be able to sort out what happened. He also believes that this is only an individual's action and that the company does not support it at all. Whether this will affect LeoVegas in the future is difficult to say, but we can only hope that this will not be the beginning of the fall of the giant.