Tom Reeg, the soon-to-be head of Caesars Leisure, has been slapped with a subpoena in a Securities and Trade Fee buying and selling probe, The Put up has discovered.
Reeg, chief govt of Eldorado Resorts ERI, -8.02% — which is within the course of of shopping for Caesars CZR, -2.78% in a $17 billion merger — obtained the subpoena in Could together with two different Eldorado board members and one Eldorado govt, the corporate revealed in a regulatory submitting Tuesday. The submitting stated the SEC was searching for details about buying and selling in a publicly traded firm tied to Eldorado board member James Hawkins, who additionally obtained a subpoena.
The corporate whose inventory they traded is MRI-maker IRadimed IRMD, -2.45% , the place Hawkins is a director, in line with a supply with direct information of the scenario. IRadimed didn’t reply to a request for remark.
Eldorado informed Caesars concerning the subpoenas in June, saying the executives had not been notified of any allegation of wrongdoing, in line with the submitting. The subpoenas, whereas revealed deep within the 475-page submitting, aren’t listed as a merger threat issue.
Reeg and one other board member who acquired an SEC subpoena, Gary Carano, will stay on the board of the mixed firm, whereas Hawkins will probably be out, the supply stated. Eldorado President and COO Anthony Carano additionally acquired subpoenaed.
Hawkins stepped down as CEO of Natus Medical final 12 months. He’s additionally a director of the Deepak Chopra-headed OSI Methods, which develops X-ray machines.