Billionaire Joe Lewis Pleads Guilty to Insider Trading in US Court

UK billionaire Joe Lewis, whose family trust owns Tottenham Hotspur football club, has pleaded guilty to insider trading in a US court. Lewis, 86, was accused of passing on information about his companies to his private pilots, friends, personal assistants, and romantic partners.

Lewis founded the investment firm Tavistock Group, which has ownership stakes in a large array of property, sports, finance, energy, and life sciences companies. He was ranked 39th in the 2023 Sunday Times Rich List, with an estimated worth of more than £5bn ($6.4bn).

He was arrested in July 2023 and charged with sixteen counts of securities fraud and three counts of conspiracy. US attorney Damian Williams said those contacts made millions of dollars in ‘sure thing’ bets on the stock market.

In one instance, Lewis allegedly advised a girlfriend to invest in a biotech company before the results of a clinical trial were made public. He then used her bank account to invest $700,000, eventually netting a profit of $849,000.

Prosecutors also said that Lewis hid the true size of his ownership stake in one company, Mirati Therapeutics. As part of the plea deal, one of Lewis’ companies, Broad Bay Ltd, also pleaded guilty to securities fraud and was fined $50m (£39m).

In court, Lewis admitted he knew what he was doing was wrong. ‘I am so embarrassed and I apologize to the court for my conduct,’ he said.

The charges Lewis pleaded guilty to carry a total maximum sentence of 45 years in prison, although federal guidelines call for a sentence of between 18 and 24 months. The plea agreement allows Lewis to appeal the decision if he is sentenced to prison time.

Lewis was born in London’s East End and took over a restaurant business started by his father before venturing into currency speculation and investments. He gained notoriety for betting heavily against the pound prior to the UK’s withdrawal from the European Exchange Rate Mechanism in 1992.

While Lewis’s bail terms restricted his travel, he still owned a majority stake in the holding company of Tottenham Hotspur football club. However, financial filings indicate that he no longer has ‘significant control’ over the club.