The plot thickens as Joe Lewis, the billionaire-owner of the renowned Tottenham Hotspur Football Club, finds himself entangled in a criminal case instead of presenting a retirement gift. Lewis frequently engaged in conversations about stock trading during his extended private jet journeys with his loyal pilots, Patrick J. O’Connor and Bryan L. Waugh.
Both pilots, nearing their retirement phase, lacked a formal retirement plan under Lewis’ portfolio companies. Demonstrating his altruism, Lewis decided to assist them by sharing clandestine stock tips. Little did they know that these tips were derived from insider information accumulated through Lewis’ investments in various companies, rendering them confidential and non-discussable. Such unscrupulous activities have led to charges filed by the U.S. attorney’s office in Manhattan, in collaboration with the Securities and Exchange Commission.
The SEC claims that both Waugh and O’Connor generated profits exceeding $200,000 from this controversial transaction.
Furthermore, Lewis, now 86 years old, stands charged alongside Waugh and O’Connor for insider trading. Federal prosecutors in Manhattan have pinned down the billionaire investment tycoon, accusing him of routinely bestowing illegal stock tips upon his employees and friends, resulting in substantial illicit gains amounting to millions of dollars. In response, Lewis, through his attorney David Zornow, dismisses these charges as a mere mistake.
The consequences loom for all three individuals as they surrendered themselves on Wednesday to confront these grave allegations in New York.
The Controversial Case of Mr. Lewis
The recent charges made by the government against Mr. Lewis, an 86-year-old man known for his impeccable integrity and remarkable accomplishments, have sparked outrage and disbelief. Despite his voluntary presence in the United States to address these allegations, Mr. Lewis’s legal team is prepared to vigorously defend him in court.
Civil Accusations and Allegations
Apart from facing charges from the government, Mr. Lewis, along with his associates O’Connor and Waugh, has also been hit with civil accusations by the SEC. The Securities and Exchange Commission has raised concerns about the involvement of Lewis’s former girlfriend, Carolyn W. Carter, 33, in illegal stock tip activities. According to the SEC, Carter allegedly received hundreds of thousands of dollars as a result of these illicit transactions.
Luxurious Perks and Unfair Advantages
According to prosecutors, not only did Lewis provide unlawful stock tips to Carter, but he also benefitted others with inside information. The beneficiaries reportedly included the staff members on his opulent private yacht, the Aviva, which is valued at a staggering $250 million. The SEC also claims that Carter, a former beauty pageant queen and Miss U.S. Virgin Islands, received substantial stock advice from Lewis during their romantic involvement from 2013 to 2020.
The Million-Dollar Advice
During their relationship, Lewis allegedly provided Carter with approximately $100,000 annually and offered her frequent investment tips. These suggestions were often based on privileged information he acquired through his personal investments. In a specific instance in 2019, the SEC alleges that Lewis tipped off Carter about a pending PIPE investment for a special acquisition company while they were staying at a luxury hotel in South Korea. Acting swiftly, Carter purchased $700,000 worth of the company’s stock within three hours of receiving the tip. The next day, when the investment was officially announced, Carter made a profit of nearly $175,000.
Seeking Clarification
Efforts to obtain a response from Carter regarding these allegations have been unsuccessful as of now. Her side of the story remains largely undisclosed.
In light of these troubling events, the case against Mr. Lewis is sure to be a closely watched and fiercely contested legal battle.
