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by Mike Caswell

The U.S. Securities and Exchange Commission and the U.S. Department of Justice have filed insider trading charges over the 2021 takeover of Score Media and Gaming Inc., a Toronto Stock Exchange listing with a well-followed app called theScore. The SEC claims that a Pennsylvania man named David Roda learned about the $2-billion takeover before it became public and bought out-of-the-money options. (All figures are in U.S. dollars.) After the companies announced the deal, he realized $560,762 in profits, the SEC claims.

The allegations are contained in a civil complaint that the SEC released on Monday, June 13, alongside a parallel criminal information sheet filed by prosecutors in Pennsylvania. The complaint identifies Mr. Roda, 36, as a resident of Philadelphia who worked at a subsidiary of Penn National Gaming Inc., which was listed on the Nasdaq. The company operated an on-line sports betting platform, as did Score Media.

The case goes back to March, 2021, when Penn National began talks with Score Media, with the objective of closing a takeover. According to the SEC, the project was highly confidential. The companies limited those who had access to the information on the transaction and used a code name.

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