Arkansas Man Pleads Guilty to Insider Trading

# Arkansas Man Pleads Guilty to Insider Trading

Douglas Dalton, 48, of Bentonville, Arkansas, pleaded guilty to securities fraud on March 31, 2026, for insider trading involving material nonpublic information. Dalton learned of a publicly traded Idaho-based company's impending acquisition during a July 2024 telephone call with Michael Smith, the company's President and Chief Operating Officer and a close personal friend. The acquisition price was approximately $31 per share.

Using the confidential information, Dalton purchased call options worth approximately $19,985.30. After the acquisition was publicly announced on August 7, 2024, he sold the options for approximately $96,515.44, generating nearly a 500% profit from the illegal trade. Dalton pleaded guilty to one count of securities fraud and faces a maximum of 20 years in prison.

Dalton is scheduled for sentencing on June 17, 2026. His co-defendant, Michael Smith, previously pleaded guilty to the same offense in November 2025 and also faces up to 20 years imprisonment. The U.S. Postal Inspection Service Criminal Investigations Group is investigating the case.