Recently, Joe Lewis, the billionaire owner of the Tottenham Hotspur Football Club in the UK, has been charged with insider trading in the United States. This comes after a lengthy investigation by the US Securities and Exchange Commission (SEC).
Lewis is accused of using confidential information to buy and sell shares in a company called Refco Inc. in 2005. The SEC alleges that Lewis used information he had obtained from Refco’s former CEO, Phillip Bennett, to make a profit of $11 million.
The SEC has also alleged that Lewis was aware that Bennett had been involved in a fraud scheme at Refco. The scheme involved Bennett hiding hundreds of millions of dollars in debt from investors. This debt was eventually discovered by the SEC and led to the collapse of Refco in 2005.
Lewis has denied any wrongdoing and has stated that he was unaware of any fraud at Refco. He has also stated that he did not receive any confidential information from Bennett.
This is not the first time Lewis has been accused of wrongdoing. In 2008, he was fined £1 million by the Financial Services Authority in the UK for insider trading.
The case against Lewis is expected to be heard in a US court later this year. If found guilty, he could face significant fines and even jail time.
The case against Lewis highlights the importance of following insider trading laws. It is essential that investors do not use confidential information to make a profit or they could face serious consequences.
