SEC v. Arthur P. Pizzello, Jr., Robert Quattrocchi — U.S. Securities and Exchange Commission Litigation Release No. 26408, dated September 23, 2025.
The SEC charged several individuals with insider trading in the stock of a cannabis company before a major acquisition was publicly announced. Two defendants, Arthur Pizzello Jr. and Robert Quattrocchi, have settled with the SEC, agreeing to pay disgorgement, prejudgment interest, and civil penalties. The case also names Anthony Marsico and Timothy Carey as defendants.
Imagine you know a big secret about a company, like it's about to be bought by another company for a lot of money. This secret isn't public yet. If you buy the company's stock because you know this secret, that's like cheating in a game. The SEC, which is like the referee for the stock market, found that some people did this. They bought stock in a cannabis company when they knew it was going to be bought, before everyone else knew. Now, two of those people have agreed to pay back the money they made (or could have made) and also pay a fine.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On September 10, 2025, the SEC obtained final consent judgments against defendants Arthur P. Pizzello, Jr. and Robert Quattrocchi, whom the SEC previously charged with insider trading in the stock of a cannabis company in advance of a February 1, 2022 public announcement that the company was being acquired in an all-stock transaction valued at approximately $413 million. The SEC’s complaint, filed on January 16, 2025, alleges that Pizzello and Quattrocchi, among others, unlawfully bought Goodness Growth Holdings, Inc. stock based on material nonpublic information about the planned acquisition. The SEC's complaint alleges that based on their unlawful insider trading in Goodness Growth stock, Pizzello had unrealized gains of $124,456 and Quattrocchi had realized and unrealized gains of $28,136 at the close of the market on the day of the public announcement. The Court entered consent judgments enjoining Pizzello and Quattrocchi from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Pizzello also consented to the entry of a final judgment ordering him to pay disgorgement in the amount of $124,456, plus prejudgment interest in the amount of $26,933, and a civil penalty in the amount of $124,456. Quattrocchi also consented to the entry of a final judgment ordering him to pay disgorgement in the amount of $28,136, plus prejudgment interest in the amount of $6,002, and a civil penalty in the amount of $28,136.
Named in this action: Arthur P. Pizzello, Jr., Robert Quattrocchi.