Stockholm-listed online gambling group Cherry AB has released a statement confirming that Chief Executive Anders Holmgren has been placed under investigation by Sweden’s Economic Crime Authority (ECA) on suspicion of insider trading.
Swedish news sources report that Cherry’s Stockholm headquarters was searched by police this Tuesday morning, in-relation to ECA’s investigation of Holmgren.
The investigation is believed to be in-relation to Cherry AB’s 2017 trading, focusing on the firm’s November ‘profit warning’ due to the tough integration of its acquired ComeOn asset.
Holmgren has been accused of gross executive misconduct with regards to purchasing circa SEK 12 million (€1 million) in company shares and issuing the November profit warning which would later be reversed as Cherry beat its expectations.
Issuing its corporate statement, Cherry detailed that it would full collaborate with ECA’s investigation. The Stockholm enterprise has further detailed that it has placed Gunnar Lind current chair of its Audit Committee as acting Cherry CEO, whilst Holmgren remains under investigation.
Holmgren who had previously served as a Cherry AB board member and executive director was appointed Group CEO of the company in January 2018 following the departure of Fredrik Burvall.
Representatives of Holmgren have yet to make a comment with regards to the accusations of insider trading and leadership misconduct.