By Josh Kosman
Tom Reeg, the soon-to-be head of Caesars Entertainment, has been slapped with a subpoena in a Securities and Exchange Commission trading probe, The Post has learned.
Reeg, chief executive of Eldorado Resorts /zigman2/quotes/205281174/composite ERI +2.63% — which is in the process of buying Caesars /zigman2/quotes/207192848/composite CZR +0.91% in a $17 billion merger — received the subpoena in May along with two other Eldorado board members and one Eldorado executive, the company revealed in a regulatory filing Tuesday. The filing said the SEC was seeking information about trading in a publicly traded company tied to Eldorado board member James Hawkins, who also received a subpoena.
The company whose stock they traded is MRI-maker IRadimed /zigman2/quotes/200590465/composite IRMD +1.78% , where Hawkins is a director, according to a source with direct knowledge of the situation. IRadimed didn’t respond to a request for comment.
Eldorado told Caesars about the subpoenas in June, saying the executives had not been notified of any allegation of wrongdoing, according to the filing. The subpoenas, while revealed deep in the 475-page filing, are not listed as a merger risk factor.
Reeg and another board member who got an SEC subpoena, Gary Carano, will remain on the board of the combined company, while Hawkins will be out, the source said. Eldorado President and COO Anthony Carano also got subpoenaed.
Hawkins stepped down as CEO of Natus Medical last year. He is also a director of the Deepak Chopra-headed OSI Systems, which develops X-ray machines.