British billionaire Joe Lewis, whose family owns the Tottenham Hotspur soccer team, dodged prison time in Manhattan on Thursday for a yearslong insider trading scheme the feds described as “brazen.”
The 87-year-old Tavistock Group founder was sentenced to three years’ probation and agreed to pay a $5 million fine for sharing tips with friends, romantic partners and two personal pilots, among others, allowing them to rake in millions.
Lewis’ Bahamas-based company, Broad Bay Ltd., previously agreed to a $50 million fine for failing to detect and report his misconduct.
Manhattan Federal Court Judge Jessica Clarke said Lewis had abused his access to market-moving information about publicly traded companies and tipped off others to similarly break the law, “even providing money for those he tipped off so that they could use that money to trade on the information he provided.”
“He didn’t just do this once, but provided insider information to multiple people over multiple years,” the judge added.
Describing what Lewis did as “undoubtedly wrong,” Clarke gave the English tycoon credit for coming to the U.S. as soon as he was notified about a warrant for his arrest and “promptly” accepting responsibility. She said a sentence of prison time would be greater punishment than necessary, given his poor health, old age and lack of a criminal record.
Prosecutors on Monday said “although punishment is warranted,” Lewis’ age and health issues warranted a lenient outcome, declining to request he serve prison time.
In the government’s sentencing submission, the feds said he committed “grave, serial breaches” of his duties to publicly traded companies at least four times between 2019 and 2021 by providing illegal stock tips, undermining “the integrity of the securities markets from which he has so handsomely profited for decades.”
In January, Forbes estimated Lewis’ net worth to be $6.3 billion.
“Unlike many defendants who commit insider trading, Lewis’s conduct was not motivated by personal profit — he did not personally trade based on inside information, and did not make any money,” Assistant U.S. Attorney Nicolas Roos wrote.
“Whether his criminal conduct was motivated by hubris, ego, a desire to make a financial gift without parting with his own money, an irrational form of greed, or some other reason, it is clear that Lewis believed he was above the law.”
Lewis pleaded guilty to conspiracy and securities fraud in January and was out on a $300 million bond he secured by surrendering his yacht and private plane. He wore an eye patch to Thursday’s proceeding and was barely visible while hiding from photographers between members of his entourage leaving the courthouse.
“I made a terrible mistake. I broke the law. I’m ashamed, sorry, and I hold myself accountable,” Lewis told the court before learning his sentence. “If your honor is so inclined to allow me, in the time I have left, to make amends and rebuild the trust I have squandered.”
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