Tottenham Hotspur Chairman Faces High-Stakes Legal Battle in New York Court for Alleged Insider Trading
Joe Lewis, owner of Tottenham Hotspur, faces indictment for an alleged insider trading scheme Accused of using privileged information to reward employees and lavish gifts on friends, Lewis plans to vigorously defend himself His limited involvement in the club's operations remains unaffected
Joe Lewis, the owner of Tottenham Hotspur through his family trust, is anticipated to make an appearance in a New York court on Wednesday following his indictment for alleged involvement in insider trading. Late on Tuesday night, the US attorney in Manhattan accused Lewis of orchestrating a "bold" insider trading scheme, leading him to voluntarily surrender to US authorities.
Damian Williams, the representative of the southern district of New York, announced in a video on messaging platform X (formerly known as Twitter) that Joe Lewis, the British billionaire, has been indicted for orchestrating a bold insider trading scheme.
According to our allegations, Joe Lewis has been exploiting his access to corporate board rooms for several years by repeatedly sharing confidential information with his romantic partners, personal assistants, pilots, and friends.
"Those folks then traded on that inside information and made millions of dollars on the stock market. Thanks to Lewis those bets were a sure thing.
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None of this was required. Joe Lewis, a man of considerable wealth, allegedly utilized privileged information to provide compensation to his employees or to lavish gifts upon his associates and romantic partners.
"This embodies typical corporate corruption, constituting deceitful behavior that is prohibited by law."
Lewis' lawyer, David Zornow, strongly criticized the government's decision to accuse Mr Lewis, an 86-year-old man known for his impeccable integrity and impressive achievements. Zornow emphasized that Lewis willingly appeared in the US to address what he considered to be poorly thought out charges, and vowed to vigorously defend his client in court.
A spokesperson from Tottenham club stated that the issue is a legal matter unrelated to the club, and therefore they have no comment.
Last year, Lewis transferred his ownership in the club, which he shared with Daniel Levy through the ENIC Group, to a family trust. Family members of Lewis continue to benefit from the trust.
What does the indictment say?
Indictment Alleges Million-Dollar Illicit Gain from Stolen InformationLewis and his associates allegedly capitalized on stolen information, reaping millions of dollars in the process. Facing charges of 16 counts of securities fraud and three counts of conspiracy, Lewis stands accused.
Between the years 2019 and 2021, Lewis is said to have shared confidential data concerning prominent firms, such as Australian Agricultural Co., Mirati Therapeutics, and Solid Biosciences.
The indictment says Lewis used information he was given as a board member to tip off friends and associates about when to buy and sell shares.
Image:
Lewis (left) with Spurs chairman Daniel Levy
Lewis's girlfriend purchased shares worth $700,000 in Solid Biosciences in 2019, reportedly after being informed about the clinical trial's outcomes by Lewis.
During the same year, Lewis allegedly advised two pilots to sell their Australian Agricultural Co. shares due to flooding in Queensland. In an email to a stockbroker, one of the pilots expressed their desire for earlier notification from Lewis, stating, "Just wish the Boss would have given us a little earlier heads up".
In October 2019, according to the indictment, Lewis provided a loan of $1m to two pilots employed by him, with the intention of purchasing shares of Mirati. Following the announcement of positive results from a clinical trial, the share price increased by 16.7%. One of the pilots allegedly texted a friend, stating that their boss had lent $500,000 for this purpose.
Throughout the period of 2013 to 2018, Lewis is accused of participating in a conspiracy to deceive Mirati, the US Securities and Exchange Commission, and investors. This was achieved by concealing his ownership stake in Mirati through the use of shell companies and other undisclosed methods.
'Lewis not involved in day-to-day running of Spurs'
As the chief reporter at We News, Kaveh Solhekol emphasizes that Tottenham fans might be feeling uneasy this morning due to the headlines. However, it is important to note that Joe Lewis is personally involved in this matter, making it a private concern for the club."The man who is in charge of running the club is the chairman Daniel Levy.
"Joe Lewis has only ever very rarely come and watched games at the Tottenham Hotspur Stadium.
Naturally, he is an individual who acquired the club by purchasing a majority share from Alan Sugar in 2001 for approximately £22m. The charges leveled against him in the United States are exceptionally grave.
There are 16 instances of securities fraud and three instances of conspiracy. However, his attorney, David Zornow, has publicly declared that these charges are misguided and that he intends to vigorously defend against them in court.
If found guilty of such charges, typically, an individual would receive a maximum prison sentence of 25 years. However, it is important to remember that innocence is maintained until proven guilty. Lewis and his legal team firmly claim his innocence and assert that he has not committed any wrongdoing.
Considering the impending court case, it is expected that this matter will unfold over a considerable period of time. The resolution of this issue will not be immediate. Nonetheless, it is important to note that the functioning of Spurs and the management of the club will remain unaffected. This incident solely pertains to Joe Lewis on a personal level.
