Key Insights
- Billionaire Joseph Lewis pleaded guilty to securities fraud charges related to insider trading in U.S. court.
- His investment group Broad Bay Ltd. also admitted participating in a scheme to hide his ownership stakes.
- Broad Bay to pay $50 million penalty, while Lewis faces up to 20 years in prison.
NEW YORK – British billionaire Joseph Lewis pleaded guilty on Wednesday to U.S. charges of securities fraud related to insider trading in pharmaceutical stocks, admitting to illegal tip-offs to associates, employees and romantic partners.
Lewis’ investment firm, Broad Bay Ltd, also pleaded guilty to participating in a scheme to conceal his ownership stakes through false filings and statements. It will pay $50 million in penalties under the plea deal.
Lewis abused inside information he gained through his access to corporate boardrooms to tip off his friends, employees, and romantic interests, said Manhattan U.S. Attorney Damian Williams. “Now, he will pay the price.
The 86-year-old Lewis, whose Tavistock Group controls English soccer team Tottenham Hotspur, faces up to 20 years in prison under the charges.
Williams said the conviction showed no matter a person’s wealth or status, the law still applies equally to all.
The case underlines U.S. prosecutors’ ongoing crackdown on insider trading among wealthy investors and corporate executives who exploit confidential corporate information.
Lewis’ sentencing is scheduled for June 7 as he became the latest high-flyer brought down in Manhattan federal prosecutors’ long-running probes into illegal leaks from corporate America.
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