Devendra Kumar
Billionaire Joe Lewis, the former owner of Tottenham Hotspur, has pleaded guilty to charges of securities fraud and conspiracy to commit securities fraud by insider trading in the US. Lewis, 86, faced 16 charges of securities fraud and three charges of conspiracy, which he had previously denied in July. He will be sentenced on March 28th.
According to prosecutors, Lewis orchestrated a “brazen insider trading scheme” in which he passed secret information to his romantic partners, personal assistants, friends, and two co-conspirators. This information allowed them to bet on companies that Lewis had invested in, using information that only those with access to the business could have known. The scheme allegedly helped them earn millions of dollars.
Lewis’s lawyer, David Zornow, said that his client still has the right to appeal if he is sentenced to time in prison. Lewis’s company, Broad Bay Ltd, also pleaded guilty and accepted its participation in hiding the billionaire’s stake in a pharmaceutical company, agreeing to pay more than $50 million in financial penalties.
The US Attorney, Damian Williams, said that Lewis’s actions were a clear example of how the law applies to everyone, regardless of wealth or status. “Billionaire Lewis abused inside information he gained through his access to corporate boardrooms to tip off his friends, employees, and romantic interests,” Williams said. “Now, he will pay the price with a federal conviction, the prospect of time in prison, and the largest financial penalty for insider trading in a decade.”
Lewis built his wealth through the investment company, Tavistock Group, and acquired a controlling stake in Tottenham Hotspur in 2001. In 2022, he ceded control of the club and formally handed his stake to a family trust, having no day-to-day involvement with the club. According to the 2023 Sunday Times Rich List, Lewis is worth more than £5 billion, ranking him as the 39th richest person in the country.
The case against Lewis is a significant example of how insider trading can have serious consequences, even for those with vast wealth and resources. The penalties imposed on Lewis and his company serve as a warning to others that the law will hold them accountable for their actions, regardless of their wealth or status.