Litigation Releases (Arthur P. Pizzello. Jr.; Robert Quattrocchi)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26408 / September 23, 2025

Securities and Exchange Commission v. Anthony Marsico, Arthur P. Pizzello, Jr., Robert Quattrocchi, and Timothy Carey

, No 1:25-cv-005553 (N.D. Ill. filed Jan. 16, 2025)

On September 10, 2025, the Securities and Exchange Commission obtained final consent judgments against defendants Arthur P. Pizzello. Jr. and Robert Quattrocchi, whom the SEC previously charged with insider trading in the stock of a cannabis company in advance of a February 1, 2022 public announcement that the company was being acquired in an all-stock transaction valued at approximately $413 million.

The SEC's complaint , filed on January 16, 2025, alleges that Pizzello and Quattrocchi, among others, unlawfully bought Goodness Growth Holdings, Inc. stock based on material nonpublic information about the planned acquisition. The SEC's complaint alleges that based on their unlawful insider trading in Goodness Growth stock, Pizzello had unrealized gains of $124,456 and Quattrocchi had realized and unrealized gains of $28,136 at the close of the market on the day of the public announcement.

The Court entered consent judgments enjoining Pizzello and Quattrocchi from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Pizzello also consented to the entry of a final judgment ordering him to pay disgorgement in the amount of $124,456, plus prejudgment interest in the amount of $26,933, and a civil penalty in the amount of $124,456. Quattrocchi also consented to the entry of a final judgment ordering him to pay disgorgement in the amount of $28,136, plus prejudgment interest in the amount of $6,002, and a civil penalty in the amount of $28,136.

The SEC's litigation is being led by Ashley Dalmau-Holmes and Timothy Leiman and supervised by Benjamin J. Hanauer and Eric M. Phillips of the SEC's Chicago Regional Office. The SEC's investigation was conducted by Richard G. Stoltz and Rebecca Hollenbeck and supervised by Steven Klawans of the Chicago Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois, the Federal Bureau of Investigation, the Financial Industry Regulatory Authority, and the British Columbia Securities Commission.