Tottenham Hotspur owner Joe Lewis charged with alleged insider trading - who is the British businessman?

Joe Lewis, the owner of Tottenham Hotspur and a British billionaire, is being charged with alleged insider trading, according to US attorney Damian Williams. The billionaire is accused of orchestrating a “brazen insider trader scheme,” where he used inside information to benefit his friends and romantic partners.

The allegations suggest that Lewis abused his access to corporate boardrooms and repeatedly provided inside information to his personal assistants, private pilots, friends, and romantic partners. These acquaintances then allegedly used this privileged information to make lucrative investments in the stock market, resulting in significant financial gains.

The US attorney claims that Lewis's actions effectively ensured that the bets made by his associates were a "sure thing," implying that they had an unfair advantage in their stock market activities. 

Mr Lewis's lawyer, David Zornow, said the government had "made an egregious error in judgment in charging Mr Lewis, an 86-year-old man of impeccable integrity and prodigious accomplishment". He added that Mr Lewis had come to the US voluntarily to answer the "ill-conceived" charges which would be "defended vigorously in court".

A spokesperson for Tottenham Hotspur said the indictment is "a legal matter unconnected with the club and as such we have no comment."

Who is Joe Lewis?

Joseph C. Lewis, born on February 5, 1937, is a British businessman and investor with a net worth of £5.096 billion as of 2023, according to the Sunday Times Rich List. He was born to a Jewish family above a public house in Roman Road, Bow, London. He left school at the age of 15 to assist in running his father's West End catering business, Tavistock Banqueting. Lewis's entrepreneurial spirit led him to expand the business by selling luxury goods to American tourists; additionally, he owned the West End club, the Hanover Grand, where he employed Robert Earl, who later became a successful entrepreneur. 

After selling the family business in 1979 for a “considerable sum”, Lewis ventured into currency trading during the 1980s and 1990s. This led him to relocate to the Bahamas, where he is now a tax exile. One of Lewis's notable achievements was during the Black Wednesday event in September 1992 when he bet on the pound's crash out of the European Exchange Rate Mechanism, resulting in substantial wealth. Lewis remains an active foreign exchange trader to this day.

Lewis is a prominent investor in the Tavistock Group, which owns over 200 companies across 15 countries, involved in various industries and sectors. He made significant investments in the property sector and hosted the Tavistock Cup tournament in Florida from 2004 to 2013, raising funds for charity. Lewis owns three of the six clubs that competed in the tournament, namely Albany, Lake Nona Golf & Country Club, and Isleworth Golf & Country Club. He built the golf community "Albany" in the Bahamas, where he currently resides. Tiger Woods and Ernie Els are also major shareholders in this luxury resort community.

The businessman also played a key role in seeding Lake Nona, a vast 7,000-acre development next to Orlando's international airport. The community offers research and educational facilities, hospitals for veterans and children, a town centre, and a range of workspaces and residential options. Lewis has been involved in various business ventures, including Bear Stearns, where he purchased a 7% stake in 2007. He also holds a substantial share in the British pub group Mitchells & Butlers.

Lewis has been married twice. His first marriage to Esther Browne ended in divorce, and they have two children, Vivienne Lewis Silverton and Charles Lewis. Vivienne is considered his "heir" and serves on Tavistock's board of directors. Charles Lewis resides in Argentina. Currently, Lewis is married to Jane Lewis and is the owner (for now) of the superyacht Aviva.

What is insider trading and does it carry a prison sentence?

Insider trading is a form of fraud that involves the illegal buying or selling of securities (such as stocks or bonds) based on confidential, non-public information about a company. This confidential information is typically known only to those within the company or who have a fiduciary duty to the company, such as executives, directors, or employees. Engaging in insider trading gives individuals an unfair advantage in the stock market, allowing them to profit at the expense of other investors who do not have access to the same information.

In Joe Lewis' situation, he is being accused of using his access to corporate boardrooms to provide inside information to his friends, romantic partners, personal assistants, and private pilots. These individuals then allegedly used the confidential information to make profitable trades in the stock market.

Insider trading is considered illegal in many jurisdictions, including the United States, where the charges against Joe Lewis are being brought in the Southern District of New York (SDNY). If found guilty of insider trading, individuals can face severe consequences, including civil and criminal penalties.