British billionaire Joe Lewis, who oversees the family trust controlling Tottenham Hotspur, has entered a guilty plea in the United States on charges of insider trading.
The plea follows accusations that Lewis was involved in a scheme intended to benefit friends and associates.
During the proceedings, Lewis expressed remorse for his actions and apologized to the presiding judge.
The 86-year-old pleaded guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud as part of an agreement reached with the U.S. Attorney’s office in Manhattan.
Under this plea deal, Lewis retains the right to appeal any potential prison sentence, as confirmed by his lawyer, David Zornow.
Consequences of his actions
Sentencing has been scheduled for March 28, where Lewis will learn the consequences of his actions.
He was initially charged in July 2023 with allegedly sharing confidential information about his portfolio companies with private pilots, friends, personal assistants, and romantic partners.
These individuals, according to prosecutors, were able to reap substantial profits as a result of this insider information.
Addressing U.S. District Judge Jessica Clarke during the recent hearing, Lewis admitted that he knew his actions were wrongful. “I am so embarrassed and I apologize to the court for my conduct,” he stated. It’s noteworthy that Lewis had previously pleaded not guilty in July.
Pleaded guilty
Although Lewis faced 16 counts of securities fraud and three counts of conspiracy related to activities spanning from 2013 to 2021, he has only pleaded guilty to the counts specified in the plea agreement.
Judge Clarke indicated that the other counts may be considered for sentencing purposes.
In response to the case, Damian Williams, the U.S. Attorney in Manhattan, emphasized that the law applies equally to everyone, regardless of their wealth or status.
Additionally, Lewis’s company, Broad Bay Ltd, a Bahamian entity reportedly used to conceal his ownership of Mirati Therapeutics shares, also entered a guilty plea and agreed to pay a $50 million fine.
Broad Bay Ltd is set to serve five years of probation. As part of the plea agreement, Lewis and his associated companies will be required to resign from the boards of U.S. companies they control.
Joe Lewis, who originally entered the business world by taking over his father’s pub in London’s East End, now boasts an estimated net worth of $6.2 billion, according to Forbes.
After selling his initial business, he founded the investment firm Tavistock Group and relocated to the Bahamas, known for its favorable tax rates.
