British billionaire Joe Lewis, former owner of the Tottenham Hotspur soccer club, has been sentenced to three years of probation and a $5 million fine for insider trading, escaping a prison sentence due to his age and health issues. The 87-year-old founder of the Tavistock Group was also ordered to restrict his business activities for several years.
Lewis, who pleaded guilty to the charges in January, admitted to sharing confidential information about four publicly traded companies with his girlfriend, personal pilot, employees, and friends. However, he did not personally trade or profit from the information shared. His decision to voluntarily return to the United States from England to face charges, along with his cooperation with the investigation, were considered by the court in imposing a penalty less than the 18 to 24 months of prison time suggested by federal sentencing guidelines.
Despite the leniency, prosecutors did not mince words in their criticism of Lewis. U.S. Attorney for the Southern District of New York, Damian Williams, stated in the court filing, “It is clear that Lewis believed he was above the law, that he had achieved a level of wealth and stature that relieved him from having to operate by the same rules that apply to everyday investors.”
Broad Bay Ltd., one of Lewis's companies, also pleaded guilty to securities fraud in the case and agreed to pay a $50 million penalty, which has been dubbed "the largest financial penalty for insider trading in a decade" by the Associated Press.
Lewis, who has an estimated net worth of $6.2 billion, expressed remorse for his actions. “I am here today because I made a terrible mistake,” he told the judge during his sentencing. “I’m ashamed.”
Despite his remorse, the court noted that Lewis's insider trading was not a one-time occurrence but a pattern of misconduct spanning several years. Some of those he shared the secrets with, including pilots Patrick J. O’Connor and Bryan L. Waugh and Lewis’s former girlfriend, Carolyn W. Carter, allegedly profited more than $545,000 from trades made off the insider information.
Lewis, known for his association with the Tottenham Hotspur Premier League club, is a self-made billionaire. His investments have included the Australian Agricultural Company, Poland Land Co., Freebirds World Burrito, and U.K. pub operator Mitchells & Butlers. His extravagant purchases include a $250 million yacht, a $90 million private plane, and an art collection worth $100 million.
If Lewis had been sentenced to prison, he would have been the oldest white-collar criminal to ever have been incarcerated, according to Fortune.
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