Billionaire Joe Lewis has been arrested for alleged insider trading.

Details

British billionaire and Tottenham Hotspur owner, Joe Lewis, has been arrested on charges of insider trading. According to an indictment by the US District Court for the Southern District of New York, Lewis is accused of sharing confidential information from publicly traded companies in which he was a major investor with his personal pilots, assistants, romantic partners, and friends. This allowed them to make substantial profits by trading securities before the information was made public.

Prosecutors claim that Lewis tipped off his acquaintances with non-public information, enabling them to collectively make “millions” through insider trading. The accusations include an instance where Lewis allegedly lent his pilots $500,000 each to purchase stock before the insider information was disclosed to the public.

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About Joe Lewis

The British billionaire owns the Bahamas-based holding company, Tavistock Group, which boasts investments in more than 200 companies, including country clubs, real estate developments, and a UK pub chain. Additionally, Lewis is the owner of English soccer club Tottenham Hotspur. With an estimated wealth of $6.55 billion, Lewis is a prominent figure in the business and sports world.

Response from Lewis's Legal Team

David M. Zornow, Lewis's lawyer, staunchly defended his client, emphasizing the 86-year-old's “impeccable integrity and prodigious accomplishment.” Lewis voluntarily came to the US to address the charges, and his legal team vowed to vigorously defend him in court.

Details of Insider Trading Cases

One notable incident in the indictment involves Lewis receiving non-public information about positive results from a clinical trial conducted by the oncology company Mirati. Allegedly, he urged multiple individuals, including his girlfriend, pilots, executive assistant, and a person he was romantically involved with, to buy Mirati stock before the news became public. The indictment claims that Lewis even extended short-term loans of $500,000 to his pilots to facilitate their stock purchase.

Similarly, as one of the largest shareholders in Solid Biosciences, Lewis allegedly gained confidential information about upcoming favorable clinical results. Acting on Lewis's advice to buy the company's stock before the news was made public, his girlfriend and pilots invested, resulting in significant gains after the clinical results were released.

Accusations of Concealment and Conspiracy

The indictment asserts that Lewis conspired with others to conceal his ownership of shares in Mirati using a series of shell companies, false filings, and misleading statements. This adds complexity to the legal situation and raises concerns about transparency in his financial dealings.

Potential Penalties

The indictment seeks to have Lewis forfeit all property associated with the proceeds from these alleged insider trading transactions. If found guilty, the billionaire could face significant financial penalties and legal repercussions.

Seeking Comments from Involved Parties

At the time of publication, Insider reached out to Lewis's lawyer, Tottenham Hotspur, and the Tavistock Group for comments on the situation, but responses had not been received.

Conclusion

The arrest of Joe Lewis, a prominent figure in both business and sports, on charges of insider trading has sent shockwaves through the financial world. As the legal proceedings unfold, the case will undoubtedly draw significant attention, and the outcome could have far-reaching implications for corporate ethics and transparency.