Ex-Home Diagnostics CEO George Holley pleaded guilty to two counts of insider trading, facing accusations that he tipped off friends and family of Nipro's intent to buy his old firm.
Back in 2010, Nipro bought Home Diagnostics for $215 million, and federal prosecutors say Holley leaked the info to at least 6 people beforehand, Bloomberg reports. The group made about $261,000 off the tip after Home's shares jumped 89%.
Holley's plea came 8 days into his trial, before he could begin his defense, and the prosecution has rested its case, according to Bloomberg. The ex-CEO faces up to 20 years on each of the two counts of securities fraud, and will face sentencing Dec. 4, the news service reports.
Holley served as Home's chief from 1985 to 2000. The company has since been folded into Nipro Diagnostics, which produces blood glucose monitoring techs and other supplies for diabetics. A spokeswoman for Nipro told FierceMedicalDevices that it's "company policy not to comment on criminal matters," and the Japanese firm hasn't issued a statement at anypoint during Holley's trial.
- read the Bloomberg report