NEW YORK (AP) – British billionaire Joe Louis, whose family trust owns Tottenham Hotspur soccer club, pleaded guilty Wednesday to insider trading and conspiracy charges in New York, disclosing disclosures related to publicly traded companies. He said he knew it was wrong to share the information and that his claims were wrong. The crime left him “very embarrassed.”
The 86-year-old businessman entered his plea in Manhattan federal court six months after being indicted in the case. He was released on $300 million bail, using his yacht and private plane as collateral.
He told Judge Jessica G.L. Clark that in 2019 he agreed to share secrets he knew about the publicly traded company with two other people who bought stock in the publicly traded company. He said he shared confidential information with another person in July and September of that year, who purchased stock in both companies.
“I knew that I was in breach of my legal obligation not to make these recommendations because non-public information had been kept in confidence with me,” he said. “I knew at the time that my actions were wrong. I am very ashamed and apologize to the court for my actions.”
Mr. Lewis said nothing as he left the courtroom, shielded from his aides, lawyers and photographers by an umbrella.
U.S. Attorney Damian Williams said the plea deal includes the largest fine for insider trading in a decade.
A guilty plea was also entered regarding Broadbay Limited, owned by Lewis. Prosecutors said in a statement that the company and Mr. Lewis will pay more than $50 million in fines.
“Today's guilty plea means that, as we said just six months ago when we announced the charges against Joseph Lewis, the law applies to everyone, no matter who they are or how much money they have. It just confirms once again that it applies,” Williams said.
He said Mr. Lewis misused inside information gleaned from corporate boardrooms to tip off friends, employees and romantic interests.
Federal sentencing guidelines call for 18 to 24 months in prison, but Lewis could seek a lesser sentence. His sentencing hearing is scheduled for March 28th.
As part of the guilty plea, Lewis and Broadbay Limited agreed that Lewis and his company would resign and relinquish control over board seats and participation on the boards of U.S.-listed companies. did. The pair also agreed to relinquish ownership of some investments during a five-year suspended sentence and to cooperate with the U.S. government's ongoing investigation and prosecution.
Mr. Lewis has a fortune that Forbes estimates at $6.1 billion, with assets including real estate, biotechnology, energy and agriculture. He bought his interest in Tottenham Hotspur, one of England's oldest football clubs, in his 2001.
Under his ownership, the Premier League club built a state-of-the-art stadium at an estimated cost of more than $1 billion.
Currently, a trust benefiting members of Lewis' family is the majority owner of ENIC, the holding company that owns the team. Lewis himself is not a beneficiary of that trust and relinquished operational control of the club in October 2022, according to corporate filings.
According to its website, Mr. Lewis' Tavistock Group owns all or part of more than 200 companies around the world, and his art collection includes works by Picasso, Matisse, Degas and others. There is. His business connections include Tiger Woods, Ernie Els, and Justin Timberlake, with whom he collaborated to build a seaside resort in the Bahamas, which opened in 2010.
The indictment against him says that by investing in various companies, Mr. Lewis gained control of board seats and filled them with people who could tell him what he had learned behind the scenes. Prosecutors said that between 2019 and 2021, Lewis improperly shared confidential information with selected recipients and encouraged them to profit from that information.
Associated Press writer Jennifer Peltz contributed to this report.
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