Lewis pleads guilty to insider trading and securities fraud while Tottenham owner

Lewis is the 316th-richest person in the world and his family owns a majority share in Tottenham

Billionaire Joe Lewis, whose family hold majority control of Tottenham Hotspur, pleaded guilty to insider trading and securities fraud in Manhattan federal court on Wednesday.
Lewis, 86, arrived at court surrounded by doctors and attorneys, and supported by an aide. After pleading guilty to the charges of securities fraud – which prosecutors called a “brazen” scheme in 2019 to enrich his friends, lovers and employees, including two private jet pilots – Lewis told Judge Jessica Clarke he knew he was “violating his public duty” when he committed the offences.
The offences were committed at a time when Lewis was still in control of the majority ownership stake held by ENIC in Tottenham.
ENIC own 86.58 per cent of Spurs shares, 70.12 per cent of which are now controlled by the Lewis Family Trust, which includes family members of Lewis’. The remaining 29.88 per cent of ENIC’s stake is owned by chairman Daniel Levy, while the remaining 12.42 per cent of club ownership is made up of smaller shareholders.
Lewis relinquished control of ENIC’s share on Oct 5 2022.
The scheme enabled them to reap millions of dollars in profit, according to prosecutors.
“I knew what I was doing was wrong. I am so embarrassed, and I apologise to the court for my conduct,” Lewis told the court, eight months after he was arrested and ordered to remain in the US.
Judge Clarke said she would sentence Lewis on March 28 after she had reviewed an agreement by Lewis’ attorney David Zornow and the government, and agreed to a condition that Lewis would have the right to withdraw his guilty plea if he is given a custodial sentence.
Under federal sentencing guidelines, Lewis faces 45 years in prison and $5 million (£3.92 million) fine. Lewis will not plead guilty to lesser counts against him under the terms of his deal, Clarke said she may consider them for sentencing purposes.
Separately, his Bahamas-based company Broadbay pleaded guilty to participating in the scheme and was hit with a $15 million fine and $35 million forfeiture.
Lewis, who appeared frail, was questioned whether he was of sound mind and health before Judge Clarke agreed to accept his guilty plea. To each question he answered “Yes, your honour.” He was warned that his plea could affect his US immigration status, including deportation.
Outside the court, a spokesman for Lewis said the businessman had “acknowledged his conduct in connection with a number of stock trades by individuals close to him.”
Mark Herr said on Wednesday: “Mr Lewis did not engage in improper trading in his own accounts. His conduct should be viewed in the context of Mr Lewis’ long life of accomplishment and integrity. Soon to be 87, Mr Lewis is deeply sorry, embarrassed, and apologises to the court, his family, and all those who have come to rely on him.”
But they noted that Lewis, who founded investment firm Tavistock Group and is worth nearly £5 billion, did not engage in improper trading in his own name – an offence that the prosecutors did not charge in the indictment.
They also pointed to a long list of accomplishments he’d made in his life and said he was “deeply sorry” for his conduct and apologised “to his family and all those who had come to rely on him during his career.”
Last year prosecutor Damian Williams, of the US attorney’s office for the Southern District of New York, said Lewis had engaged in “classic corporate corruption. It’s cheating and it’s against the law.”
Lewis’ guilty plea does not affect the charges against his pilots, Patrick O’Connor and Bryan Waugh, were also charged in the scheme. Like Lewis previously, the two men entered not guilty pleas last July.
Tottenham Hotspur has previously referred to the charges against Lewis as a “legal matter unconnected with the club”.
Tottenham and chairman Daniel Levy declined to comment, but in July last year a club spokesperson said: “The owner of Tottenham Hotspur Football Club is ENIC, with majority control held by a Family Discretionary Trust of which Mr Joseph Lewis is not a beneficiary.
“The Trust is managed by two independent professional trustees on behalf of its beneficiaries. Mr Lewis ceased to be a person with significant control of the Club in October 2022.
“This is a US legal matter unconnected with the Club and as such have no comment.”