Arkansas man admits to insider trading scheme tied to Idaho company
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WASHINGTON — An Arkansas man has admitted to securities fraud after federal prosecutors say he made nearly half a million dollars in illegal profits by trading on confidential information tied to an Idaho-based company.
According to the U.S. Department of Justice, 48-year-old Douglas Dalton pleaded guilty Monday to one count of securities fraud for insider trading involving PetIQ, a publicly traded pet health company headquartered in Idaho.
Court records show Dalton was close friends with Michael Smith, PetIQ’s then–president and chief operating officer. During a July 26, 2024, phone call, Smith shared confidential, market-moving information about an upcoming acquisition of the company at roughly $31 per share. Prosecutors say Dalton knew the information was both material and nonpublic but used it anyway.
Dalton quickly purchased nearly $20,000 worth of company call options. When the acquisition was publicly announced on Aug. 7, 2024, he sold those options for a profit of about $96,500, a return of nearly 500%.
Dalton is scheduled to be sentenced on June 17. He faces up to 20 years in federal prison. Smith, who admitted to the same charge in November 2025, faces the same potential penalty.