Former president, COO of Idaho company pleads guilty to insider trading
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WASHINGTON — A top Idaho corporate executive has pleaded guilty to insider trading after federal prosecutors say he secretly profited from advance knowledge of a major corporate acquisition.
Michael Smith, 48, of Eagle, served as president and chief operating officer of an Idaho-based company publicly traded on NASDAQ. According to court documents, Smith learned in 2024 that his company was about to be acquired, information that had not yet been made public and was protected under the company’s insider-trading policy.
Despite being barred from trading the stock, prosecutors say Smith used a brokerage account belonging to a close associate, identified only as “Individual-A,” to buy shares on July 26, 2024. When the acquisition was announced publicly on Aug. 7, the company’s stock price jumped nearly 50%. Smith then sold the shares the next day, generating a profit of about $145,754, which he intended to benefit the associate, according to court documents.
Smith pleaded guilty to one count of securities fraud, according to a news release from the U.S. Department of Justice. He faces up to 20 years in federal prison, though a judge will determine the final sentence under federal guidelines.
The case was announced by officials with the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the District of Idaho, and the U.S. Postal Inspection Service, which is leading the investigation. Prosecutors from the DOJ Fraud Section and the District of Idaho are handling the case.