Stockholm-listed online gambling operator Cherry AB says its CEO will remain under detention as the authorities proceed with an insider trading case.

On Wednesday, Cherry announced that its CEO Anders Holmgren had been detained by officials from Sweden’s Economic Crime Authority (EBM) on suspicion of ‘severe’ insider trading of Cherry stock ahead of an unexpectedly positive earnings report.

On Thursday, Cherry confirmed that a hearing at Stockholm District Court had resulted in a detention order against Holmgren (pictured), based on the court concluding there were reasonable grounds for the validity of the EBM’s allegations.

If found guilty of the charges, Holmgren could face a prison sentence of between six months and six years. Gunnar Lind, chairman of Cherry’s audit committee, has been named acting CEO of the company until further notice.