SEC Investigates Stock Trading by Eldorado Resorts Executives
(Bloomberg) -- Eldorado Resorts Inc.’s most senior executives, including Chief Executive Officer Tom Reeg, were subpoenaed by the U.S. Securities and Exchange Commission over their trading in the shares of another company.
Chairman Gary Carano, President Anthony Carano and board member James Hawkins also received subpoenas. The investigation could impact their board positions when Eldorado completes its $8.7 billion merger with Caesars Entertainment Corp., the company said in a regulatory filing Tuesday.
The investigation involves their trading in the shares of a company where Hawkins had served as a board member. The New York Post reported Wednesday that the company was medical-device maker IRadimed Corp. Eldorado is in the process of acquiring Caesars in one of the largest casino-industry mergers in years.
Eldorado and Caesars declined to comment. A recorded message at IRadimed said its Winter Springs, Florida, offices were closed due to Hurricane Dorian.
Eldorado executives haven’t been notified of any allegation of wrongdoing in connection with the investigation, according to the filing.
Caesars and Eldorado agreed to change the composition of the combined company’s board in the event that Reeg and Gary Carano are no longer serving on the board of Eldorado, the filing said. Reeg has said he hopes to complete the merger early next year.
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