An eye-patch-wearing Joe Lewis will avoid prison despite admitting a “terrible mistake” in his insider trading court case in Manhattan.
The 87-year-old billionaire, whose family trust holds the majority stake in Tottenham, was fined $5million [£3.95m] and sentenced to three years’ probation at a New York Court on Thursday.
US District Judge Jessica Clarke ruled that businessman Lewis should not serve prison time, due to a litany of health issues. Judge Clarke told the court Lewis’ health “would be at serious risk if he were to be incarcerated.”
Bahamas resident Lewis told the court: “I made a terrible mistake, I broke the law, I am ashamed, sorry and hold myself accountable.”
The British businessman pleaded guilty to US insider trading charges in January, admitting one count of conspiracy to commit securities fraud and two counts of securities fraud. Lewis accepted those limited charges under an agreement with the US attorney’s office in Manhattan.
Lewis was accused in July 2023 of a scheme that prosecutors said was designed to enrich friends and associates.
The British billionaire was originally charged by federal prosecutors with 16 counts of securities fraud and three counts of conspiracy, for events ranging from 2013 to 2021.
British billionaire Joe Lewis arrives to Manhattan federal court on Thursday afternoon for sentencing on guilty pleas for insider trading. pic.twitter.com/9QnmhaPldp
— JOSH RUSSELL (@jruss_jruss) April 4, 2024
Lewis pleaded not guilty in July 2023, but then admitted the three specific counts in January.
The initial charges related to claims of passing inside information on his portfolio of companies to two of his private pilots, friends, personal assistants and romantic partners.
Those tips allowed the recipients to claim millions of dollars’ profit, prosecutors claimed.
Lewis’ guilty plea in January involved agreeing to a £50million fine of his Bahamas company Broad Bay.
He also agreed to resign board seats at US companies and relinquish majority ownership of fund Boxer Capital.
Lewis travelled to New York to face the charges straight after receiving his indictment, and has since remained in the US, posting £300million bail secured by his yacht, and a private aircraft.
His decision not to fight extradition, coupled with significant health issues, led prosecutors to seek leniency, leading to him avoiding jail time.
Prosecutors claimed Lewis collected inside information about four companies in which he had invested, tipping friends and associates between 2019 and 2021.
Pilots Patrick O’Connor and Bryan Waugh are accused of making millions in illegal profits from Lewis’ tips.
O’Connor pleaded guilty and is slated to be sentenced in May.
Waugh denied wrongdoing and insisted the charges should be dismissed.
