Former employee of PA-based gaming and casino company charged with insider trading | USAO-EDPA

PHILADELPHIA — US Attorney Jennifer Arbittier Williams announced that David Roda, 36, of Philadelphia, PA, has been charged by Criminal Information with insider trading.

The defendant was an employee of Penn Interactive, a wholly owned subsidiary of Penn National Gaming, Inc., and served as director of backend architecture. The Information alleges that in that capacity, Roda learned in early July 2021 that Penn National was considering a potential acquisition of Score Media and Gaming, Inc. and knew he was required to keep this information confidential. Nonetheless, on July 22, 2021, using this material non-public information, Roda purchased 200 call option contracts from Score Media for approximately $13,000. After a Penn Interactive executive informed Roda in August 2021 that the acquisition would be announced within days, Roda reportedly purchased 300 more Score Media call options contracts for approximately $7,000. The following day, Penn National announced its agreement to acquire Score Media, and Score Media’s stock price rose sharply. The defendant then closed his Score Media call option contracts for approximately $580,000 and made a personal profit of approximately $560,000.

“Insider trading undermines confidence in our financial markets and harms ordinary investors who follow the rules,” US Attorney Williams said. “As alleged, David Roda put himself above the law by using information to which he had privileged access to defraud the market and other investors. Our office will continue to work with our law enforcement partners to protect the integrity of financial markets.”

“David Roda allegedly traded in material, non-public information and posed as a bandit,” said Jacqueline Maguire, special agent in charge of the FBI’s Philadelphia Division. “Such insider trading is patently unfair to investors and a direct threat to the integrity of our financial markets. The FBI takes this crime seriously, and if you decide the risk of such illegal behavior is worth the potential reward, rest assured that we are investigating and making sure you are held accountable.”

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant US Attorney Patrick J. Murray. The parallel civil enforcement action was filed by the Philadelphia Regional Office of the Securities and Exchange Commission, led by Norman Ostrove.

An indictment, information or criminal complaint is an indictment. A defendant is presumed innocent until proven guilty.