British billionaire Joe Lewis has surrendered himself to U.S. authorities in Manhattan and is scheduled to appear in court later today. The U.S. Attorney’s office in Manhattan confirmed that Lewis, whose family trust controls a majority stake in the Tottenham Hotspur soccer team, is facing insider trading charges.
According to federal prosecutors, Lewis orchestrated a “brazen” insider trading scheme by sharing tips about his investments with friends, personal assistants, private pilots, and romantic partners. Two of Lewis’ pilots, Patrick O’Connor and Bryan Waugh, have also been charged with insider trading securities fraud. Prosecutors allege that the pilots made millions of dollars in illegal profits from Lewis’ tips.
David Zornow, Lewis’ lawyer, argued that the charging of Lewis, who is 86 years old, was a mistake and stated that his client had voluntarily come to the United States to defend himself against the charges. Lawyers for O’Connor and Waugh did not respond to requests for comment, but prosecutors confirmed that they have been arrested.
Prosecutors claim that in 2019, Lewis loaned each pilot $500,000 and instructed them to purchase stocks in oncology company Mirati Therapeutics before the release of positive clinical results. O’Connor even texted a friend, referring to Lewis as “the Boss” and suggesting that he had inside information. Following the announcement of the favorable results, Mirati’s share price increased by 16.7% in a single day, and both pilots repaid Lewis for their loans.
In a separate development, the U.S. Securities and Exchange Commission (SEC) filed a civil case against Lewis, O’Connor, Waugh, and Lewis’ former girlfriend Carolyn Carter for insider trading. Carter, who is not facing criminal charges, has not yet commented on the matter.
Lewis, who founded the investment firm Tavistock Group, faces 16 counts of securities fraud and three counts of conspiracy for alleged crimes that took place between 2013 and 2021. With a net worth of $6.1 billion, he controlled board seats at various companies and appointed employees to serve on boards, granting him access to inside information, according to prosecutors.
In a statement, Damian Williams, the U.S. Attorney in Manhattan, criticized Lewis, stating, “None of this was necessary. Joe Lewis is a wealthy man.” Williams’ office has consistently focused on combating insider trading since 2009 when the crackdown began under his predecessor, Preet Bharara.
O’Connor and Waugh, both residents of the United States, face seven counts of securities fraud and one count of conspiracy each. Tottenham Hotspur issued a statement, clarifying that the legal matter is unrelated to the club and they have no comment on the situation.
Reporting by Luc Cohen and Jonathan Stempel in New York; Additional reporting by Chris Prentice in New York; Editing by Chizu Nomiyama and Daniel Wallis
Credit: The Star : News Feed
