A Hermosa Beach man was found guilty of conspiracy to engage in insider trading by a federal grand jury in Chicago, authorities said Wednesday, April 17.

Eric Weller, 54, was also acquitted on three counts of securities fraud, said Joseph Fitzpatrick, spokesman for the U.S. Attorney’s Office in Chicago. He faces a maximum sentence of five years in prison and was ordered to return to court for sentencing on July 10.

Weller was charged along with eight other defendants after a vice president of corporate sales at Minnesota-based Life Time Fitness Inc. received non-public information about the potential sale of the company in 2015 and passed the information along to a friend so the friend could trade and profit, Fitzpatrick said.

The friend then shared the information with others and eventually, Weller learned of the potential sale. Weller purchased Life Time Fitness securities before news of the company’s sale became public, Fitzpatrick said.

Weller gained $550,000 in illegal profits through the purchased securities during a three-week period.

Five other defendants pleaded guilty to the conspiracy charge and were awaiting sentencing, Fitzpatrick said. The other three defendants admitted their roles in the conspiracy and cooperated with the investigation.

Load comments