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by Mike Caswell

Timothy Carey, a Chicago-area man charged for trading ahead of a $413-million takeover offer for Canadian Securities Exchange listing Goodness Growth Holdings Inc., has reached a deal with U.S. federal prosecutors to resolve the matter without going to jail. (All figures are in U.S. dollars.) The government claims that Mr. Carey was part of a group of golf club friends that traded Goodness Growth in 2022. One of the group's members had learned about the takeover offer for the company through his work.

Mr. Carey's deal with prosecutors is set out in an agreement filed on April 9, 2025, in federal court in Chicago. Mr. Carey has agreed that he will serve 50 hours of community service and, in return, prosecutors have agreed that they will not pursue the charges against him. Assuming Mr. Carey fully co-operates, prosecutors will drop the charges in 18 months.

With the agreement, Mr. Carey's only substantial penalties for the scheme could arise in a parallel civil matter that the U.S. Securities and Exchange Commission is pursuing against him and the others. The possible penalties in that case include fines and bans. So far, Mr. Carey is the third defendant in the case to accept a deal with prosecutors. The others were former brokerage employee Arthur Pizzello and Chicago-area resident Robert Quattrochi. Those men also accepted 50 hours of community service in return for prosecutors dropping the charges.

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