Two representatives of Joe Lewis, a British billionaire accused of orchestrating an insider trading scheme, deny leaking sensitive information while on the board of a major Australian cattle company.
The response from Australian Agricultural Company (AACo) comes as Lewis faces 16 counts of securities fraud in the US allegedly conducted to enrich his friends, lovers and private jet pilots.
Lewis, a prominent businessman who owns English football club Tottenham Hotspur, denies the charges, which his lawyers describe as an “egregious” mistake by US prosecutors.
On Tuesday, AACo responded to a query from the stock exchange asking whether a board member shared confidential information with Lewis prior to its public release.
“Based on the information available to AACo, including information provided by the two relevant board members, the answer is ‘no’,” the statement said.
“Enquiries are continuing.”
Lewis has pleaded not guilty to all 16 counts of securities fraud, which can carry a sentence of up to 20 years, and three counts of conspiracy to commit securities fraud.
The allegations, detailed in a 29-page document, concern several companies the billionaire had interests in, ranging from US biotech to the Australian cattle company.
The 86-year-old’s private company, Tavistock, has a majority 51% share of AACo, and has two representatives on the cattle company’s board.
In early 2019, Queensland suffered significant flooding, although it was not initially known what financial impact it would have on AACo, given the company’s enormous land holdings, the US attorney for the southern district of New York alleges.
Prosecutors allege that AACo board members began providing Lewis with updates around the beginning of February 2019 on the potential impact on the business.
The board then determined at a meeting the losses were likely to be “material” and decided to issue a statement to disclose the information.
After the meeting but before the public announcement, one of Lewis’s board members informed him of the material losses, according to the indictment.
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Photograph: Amr Alfiky/Reuters
Lewis was also told the company did not have insurance for the cattle and the Australian government would not cover any of its losses.
It is alleged Lewis then discussed the information with one of his pilots who had shares in the cattle company. That information was to be shared with another personal pilot, and both would sell their AACo stock, prosecutors say.
Notwithstanding the alleged tip, the pilots’ stockbroker was unable to sell their shares before AACo’s public announcement, which sent stock prices sharply lower.
After the stockbroker apologised about the delayed sales execution, one pilot allegedly responded: “Just wish the Boss would have given us a little earlier heads up.”
The other charges relate to non-public information Lewis allegedly provided people close to him, including his girlfriend, that resulted in share purchases.
