On August 30, 2021, the US Securities and Exchange Commission announced settlements that were reached with Missouri residents Scott and Lisa Chasin and Beth Mueller, senior director of corporate reporting at Peak Resorts, Inc., to resolve insider trading charges for securities trades made ahead of an announcement by Peak Resort of its potential merger with Vail Resorts, Inc.. As the senior director, Mueller obtained what she knew to be material non-public information related to the merger with Vail. Shortly before the merger was announced, she informed the Chasins, her long-time friends and neighbors, that it was a good time to buy Peak Resorts stock. The Chasins, who rarely invested in individual stock and had not previously owned Peak Resorts securities, immediately acted on the tip and purchased Peak Resorts shares on the last day of trading before the merger announcement. When the merger plans were announced, Peak Resorts’ stock value increased by 113 percent, and the Chasins realized trading profits of $14,000.
The SEC charged Mueller and the Chasins with violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, which prohibit fraudulent conduct in connection with securities trades. Without admitting or denying the allegations, Mueller and the Chasins agreed in separate agreements to pay $27,996 civil monetary penalties and cease-and-desist from further securities violations.
SEC Press Release | Cease-and-Desist Order – Mueller | Cease-and-Desist Order – Chasins