Former Zions Bancorp. executive Dale Moroni Gibbons exercised stock options last month that netted him a profit of $913,294 the day before he resigned his position as chief financial officer following his arrest on drug possession and related charges.
According to insider trading forms filed with the U.S. Securities and Exchange Commission, Gibbons bought a total of 45,166 Zions shares on June 27 at four different prices and then immediately sold all of them for $58.07 per share (fair market value at that date) for a total of $2.622 million.
His profit came from the difference in the prices at which he was allowed to buy the shares on that date and the $58.07 selling price.
According to the insider trading filing, Gibbons exercised options to buy 8,000 shares at $22.06 per share; 12,000 shares at $31.00; 8,666 shares at $41.63; and 16,500 shares at $48.50.
He paid a total of $1.709 million for the shares and immediately sold them for $2.622 million, realizing a profit of $913,294.
Zions did not return calls by press deadlines Tuesday seeking to determine if Gibbons has any more stock options that can still be exercised or if the June 27 transactions completes his option agreements.
Gibbons, 41, is charged with possession of methamphetamine, dealing in material harmful to a minor and endangering a child, all third-degree felonies.
Gibbons' daughter, 15, and another young woman, 19, were rushed to a hospital in critical condition on June 11 after Gibbons made a 911 call in which he allegedly reported the 19-year-old had overdosed on drugs, according to court documents.
She appeared to have ingested GHB or a drug called ketamine that is used as an animal anesthetic. She also tested positive for cocaine, according to court documents. Gibbons' daughter had "an unknown substance" in her system, and both young women had consumed "significant amounts" of alcohol, court documents said.
Police reports show that Salt Lake County deputies later seized nearly a gram of methamphetamine from a nightstand drawer in Gibbons' bedroom and seven "hard-core pornographic magazines" from another room.
An outside audit of Zions Bancorp. was conducted in the wake of the charges, but officials said no problems were found.
Last week, Gibbons switched attorneys and linked up with celebrity lawyer Robert Shapiro — who is perhaps best known as a member of O.J. Simpson's legal team
Originally released from Salt Lake County Jail on $150,000 bail, that was later reduced to $75,000 by 3rd District Court Judge Robin Rees.
Gibbons' next court date is Aug. 14 before 3rd District Court Judge Frank Noel.