EAGLE, Idaho — The former COO and President of PetIQ, a company based in Eagle, has pleaded guilty to insider trading.
In 2024, 48-year-old Michael Smith of Eagle obtained "material nonpublic information" regarding the acquisition of PetIQ by the Bansk Group, a private equity firm based in New York City.
On July 26, 2024, Smith purchased PetIQ stock using a brokerage account belonging to a close friend. He did so with knowledge of the impending acquisition and despite being prohibited from trading PetIQ stock based on material nonpublic information.
News of the PetIQ acquisition by the Bansk Group became public on August 7, 2024, which pushed the stock price up by 50%.
The following day, Smith and his friend sold the PetIQ stock for a profit of $145,754.69.
Michael Smith later pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 years in federal prison.
A federal district court will hold a sentencing hearing to determine penalties based on "U.S. Sentencing Guidelines and other statutory factors."
U.S. Postal Inspection Service Criminal Investigations was the investigative agency assigned to the case.
Attorneys Kyle Crawford and John Liolos of the Criminal Division's Fraud Section and Assistant U.S. Attorney Sean Mazorol for the District of Idaho are prosecuting the case.
