International edition
September 16, 2019

The investigation could impact their board positions when the firm merges with Caesars

Eldorado top executives' stock trading under probe by SEC

Eldorado top executives' stock trading under probe by SEC
Caesars and Eldorado agreed to change the composition of the combined company’s board in the event that CEO Tom Reeg and Chairman Gary Carano are no longer serving on the board of Eldorado.
United States | 09/05/2019

The U.S. Securities and Exchange Commission subpoenaed CEO Tom Reeg and the company's President, Chairman, and a board member tied to a company involved in the shares trading under probe. The subpoenas are not listed as a merger risk factor.

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ldorado 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 and COO Anthony Carano and board member James Hawkins also received subpoenas in May. 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 told Caesars about the subpoenas in June, and Eldorado executives haven’t been notified of any allegation of wrongdoing in connection with the investigation, according to the filing. The subpoenas, while revealed deep in the 475-page filing, are not listed as a merger risk factor.

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.

Hawkins stepped down as CEO of Natus Medical last year, according to the NY Post. He is also a director of the Deepak Chopra-headed OSI Systems, which develops X-ray machines.

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