British billionaire Joe Lewis, 86, has pleaded guilty to insider trading charges in the United States. The charges were filed last year after Lewis was accused of orchestrating a scheme to benefit his friends and associates. Lewis, whose family trust controls the majority of the Tottenham Hotspur soccer team, expressed remorse and apologized to the court for his actions.
A Guilty Plea and Apology
During a hearing in Manhattan, Lewis entered a guilty plea to one count of conspiracy to commit securities fraud and two counts of securities fraud. His lawyer, David Zornow, stated that Lewis can appeal if the judge decides to sentence him to prison time. The sentencing is scheduled for March 28.
Lewis was accused of sharing inside information on his portfolio companies with his private pilots, friends, personal assistants, and romantic partners. According to prosecutors, this allowed them to make millions of dollars in profit. Lewis acknowledged that he knew his actions were wrong and expressed embarrassment and remorse.
Legal Consequences
Lewis faced charges of 16 counts of securities fraud and three counts of conspiracy for his conduct between 2013 and 2021. Although he didn’t plead guilty to all the counts, the judge may consider them during the sentencing. Damian Williams, the U.S. Attorney in Manhattan, emphasized that the law applies to everyone, regardless of wealth or status.
Plea from other Parties Involved
Lewis was not the only one charged in this case. His private pilots, Patrick O’Connor and Bryan Waugh, were also implicated and pleaded not guilty to the charges.
Broad Bay Ltd’s Involvement
Broad Bay Ltd, an entity owned by Lewis and used to conceal his ownership of Mirati Therapeutics shares, also pleaded guilty and agreed to pay a $50 million fine. The entity will undergo five years of probation. As part of the plea agreement, Lewis and his companies are required to resign from the boards of U.S. companies they control.
Lewis’s Journey
Starting with a pub in London’s East End, Lewis built his business empire and is currently estimated to be worth $6.2 billion. He sold his business, founded the investment firm Tavistock Group, and relocated to the Bahamas due to its favorable tax rates. Lewis splits his time between the Bahamas, a luxury estate in Florida, and property in Argentina. He has been out on a $300 million bond secured by his yacht, “Aviva,” and private aircraft.
Sentencing Coincidence
Ironically, Lewis’s sentencing, set for March 28, is on the same day that another disgraced Bahamas billionaire, Sam Bankman-Fried, is scheduled to be sentenced for stealing billions of dollars from customers. Both cases will be heard in the same courthouse.
Insider Trading Scheme
Prosecutors alleged that Lewis obtained inside information about companies in which he had invested through his hedge fund. He then shared this information with friends and associates between 2019 and 2021. The companies involved include Mirati Therapeutics and BCTG Acquisition Corp. Lewis concealed the extent of his holdings in Mirati by using a trust and a shell company registered under his granddaughter’s and an employee’s names.
Lewis’s spokesperson, Mark Herr, stated that Lewis did not engage in improper trading in his personal accounts.
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