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by Mike Caswell

Timothy Carey, a Chicago-area man charged for insider trading related to a $413-million takeover offer for Canadian Securities Exchange listing Goodness Growth Holdings Inc., has avoided any serious penalties for the scheme. (All figures are in U.S. dollars.) He has reached an out-of-court deal with the U.S. Securities and Exchange Commission that will see him pay $9,260 plus interest. The SEC said that Mr. Carey was part of a group of golf club friends that traded Goodness Growth in 2022 after one of the men learned of the deal through his work.

The penalties for Mr. Carey are contained in a consent judgment filed on Wednesday, Feb. 25, in federal court in Illinois. A judge has ordered Mr. Carey to disgorge his gains from the scheme and has barred Mr. Carey from any future violations. The judge gave Mr. Carey one year to come up with the money.

The SEC payment forms just part of Mr. Carey's penalty for the scheme. He also faced related criminal charges, which he resolved through a deferred prosecution agreement. The agreement allowed Mr. Carey to avoid the possibility of jail time, requiring that he serve 50 hours of community service. Prosecutors also agreed that they would drop the charges if he co-operated with the government for a period of 18 months.

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