British billionaire Joe Lewis pleads guilty to insider trading, securities fraud

British billionaire Joseph Lewis pleaded guilty Wednesday in New York federal court to securities fraud related to insider trading.

Lewis’ company, Broad Bay Ltd., also pleaded guilty in the same proceeding to participating in a scheme to hide his ownership of shares of a pharmaceutical company by making false filings and misleading financial statements.

Broad Bay will pay $50 million in penalties as part of its plea.

“Lewis abused inside information he gained through his access to corporate boardrooms to tip off his friends, employees, and romantic interests,” said Manhattan U.S. Attorney Damian Williams. “Now, he will pay the price with a federal conviction, the prospect of time in prison, and the largest financial penalty for insider trading in a decade.”

Lewis, 86, faces a maximum possible sentence of 20 years in prison on the charges he pleaded guilty to in U.S. District Court in Manhattan: one count of conspiracy to commit securities fraud, and two counts of securities fraud.

Lewis is the principal owner of the private investment organization Tavistock Group, and through a family trust controls a majority ownership stake in the English Premier League soccer team Tottenham Hotspur.

“Today’s guilty pleas once again confirm — as I said in announcing the charges against Joseph Lewis just six months ago – the law applies to everyone, no matter who you are or how much wealth you have,” said Williams, whose office prosecuted Lewis.

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