Spurs boss Joe Lewis, 87, AVOIDS JAIL over insider trading after spilling company info to girlfriend & jet pilots
FORMER Tottenham Hotspur owner Joe Lewis has avoided jail after pleading guilty to insider trading and conspiracy charges.
The Brit billionaire, 87, spilled secrets to his girlfriend, private pilots, family and friends as part of a “brazen” multi-year scheme said to have earned his inner circle millions.
Lewis arrived at a New York court on Thursday, wearing an eyepatch and a pair of dark sunglasses, and was shielded from the media by security.
He held a scarf over his face as an unknown woman covered him with her coat.
It was later revealed that the billionaire will avoid being sent to prison for insider trading, after US District Judge Jessica Clarke sentenced him to a $5million (£4million) fine and three years’ probation.
Lewis pleaded guilty in January to one count of conspiracy and two counts of securities fraud.
Federal sentencing guidelines had called for a prison sentence of up to two years, but the judge was not bound by them.
The ex-Spurs chief, understood to be worth $6.2billion (£4.8bn), gave up control of the club in October 2022, but his family trust still owns the majority of it.
London-bred Lewis, who now lives in the Bahamas, was expected to to serve 18 months to two years behind bars.
However, prosecutors argued his age, significant medical issues, willingness to stand trial in the US and otherwise law-abiding life had earned him leniency.
As part of his plea deal, Lewis had the right to appeal in the event he is sentenced to prison time.
At his January hearing, the businessman admitted that he agreed in 2019 to share secrets about publicly traded companies with several individuals.
He told the court that he was “so embarrassed” as he apologised for his conduct.
Prosecutors said that his company, Broad Bay Limited, and Lewis would pay $50million (£38million) in financial penalties – the largest financial penalty for insider trading in a decade.
Lewis counts himself within the 500 richest people in the world, with a mega property portfolio across the world, a $250million (£190million) yacht, private planes worth $90million (£70million) and an art collection valued $100million (£80m).
In July of last year, Lewis was charged with passing inside information on his portfolio companies to his inner circle.
… Lewis believed he was above the law, that he had achieved a level of wealth and stature that relieved him from having to operate by the same rules that apply to everyday investors
Prosecutors
The tips enabled them to reap millions of dollars of profit, according to prosecutors.
He was charged with 16 counts of securities fraud and three counts of conspiracy for crimes spanning from 2013 to 2021.
Prosecutors branded his actions as “classic corporate corruption” carried out by orchestrating a “brazen” insider trading scheme.
In new court papers, prosecutors said Lewis learned secrets about public companies after making large investments.
They said that on at least four occasions, he tipped off his girlfriend, personal pilots, employees and friends, enabling them to heavily profit from the secrets.
This insider trading was “not the result of aberrant, one-time conduct, but rather, a troubling pattern of misconduct over the course of several years,” they wrote.
Prosecutors said it was possible that the insider activity resulted from “hubris, ego, a desire to make a financial gift without parting with his own money, an irrational form of greed, or some other reason.
“But, regardless, it is clear that Lewis believed he was above the law, that he had achieved a level of wealth and stature that relieved him from having to operate by the same rules that apply to everyday investors,” prosecutors said.
APPEALS FOR LENIENCY
From the start, Lewis was no ordinary defendant.
After his arrest less than a year ago, he was freed on a $300million (£237million) bail after putting up a yacht and private plane as collateral.
Lewis is limited to travelling between New York, Florida and Georgia, where he owns property.
Lewis’ lawyers had appealed for leniency, based on arguments that he is nearing the end of life with declining health and the court’s probation office recommendation of no prison time, a fine and three years on probation.
His defence said that if he received no prison time, he will immediately leave the US.
His conviction will mean he cannot return to see his children, grandchildren and great-grandchildren, who live in the US.
The glitzy rise of Joe Lewis
BRIT billionaire businessman Joe Lewis has been sentenced for insider training. Here is the rise and fall of the ex-Spurs chief:
After quitting school at the age of 15, entrepreneurial Lewis went to work for his dad’s catering company.
Lewis began managing a super-club called The Talk of the Town – where the likes of Frank Sinatra performed – in the 1960s, and granted girl group The Nolans their first live show.
He then got a taste for business and took over the firm – turning it into a string of restaurants before flogging it in 1979 for a whopping £30million.
Lewis used his cash influx to invest in currency trading and was subbed The Boxer in a nod to his wild success and power in the investment ring.
Lewis forked out £22million in 2001 to buy a controlling stake in Tottenham Hotspur from Lord Sugar.
One particular investment on Black Wednesday in September 1992 helped elevate him to uber-rich status, as he successfully bet on the Pound crashing out of the European Exchange Rate as Britain tried to align it with other Euro countries.
He became a billionaire overnight – and the financial magic trick worked again years later with a big short against the Mexican peso.
Along the way, Lewis founded Bahamas-based investment firm Tavistock Group – which he has propelled into one of the most dominant private equity firms in the world.
But it’s not been all work and no play for Lewis, who has spent eye-watering sums on luxury items – homes, art and a superyacht worth £190million, which can house up to 16 guests.
In 2022, Lewis made history by selling David Hockney’s 1972 piece, ‘Portrait of an Artist (Pool with Tool Figures)’.
Having owned the piece since 1995, Lewis auctioned it off for £70.3million – setting a new record for artwork by a living artist.
However, his life of glamour, football and boats all came crashing down when US prosecutors charged him with insider trading and conspiracy in July, 2023.
They accused him of tipping off his girlfriend, jet pilots and other members of his inner circle with insider secrets that helped them make millions over several years.
On January 24, 2024, he pleaded guilty to security fraud.
On April 4, 2024 – Lewis was sentenced by a New York court.