Former Life Time Fitness VP of Sales, Friends Indicted in Chicago

A file photo of a Life Time Fitness exterior Photo: KSTP, File
A file photo of a Life Time Fitness exterior

September 29, 2017 01:04 PM

An executive at a major Minnesota-based fitness firm and eight others are accused in a new federal indictment of using insider information to scoop up stocks before word of the company's sale in 2015 pushed share prices higher.

A Friday statement from the U.S. attorney's office in Chicago says the suspects made nearly $900,000 in illegal profits buying shares in Life Time Fitness Inc. earlier in 2015. Its vice president for corporate sales, Shane Fleming, allegedly passed the insider tip to a friend. The friend then told his girlfriend and other friends.

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The share price soared from around $58 to around $70 within just days in March 2015 after a newspaper first reported the company's pending sale.

According to a complaint, the individuals who participated in the information trading scheme collectively bought 2,099 out-of-the-money Life Time call options and 250 Life Time shares in the weeks leading up to the announcement that the company was going to be purchased and transitioned into a private company.

Fleming is currently working as a consultant in the fitness industry.

Messages from the Associated Press seeking comment from Fleming and Life Time Fitness weren't immediately returned.

The Associated Press contributed to this report.

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