In the world of high finance and football, there exists a man of mystery and immense wealth – Joe Lewis, a billionaire with a staggering net worth of $6.6 billion, according to Bloomberg. Well-known as the owner of Tottenham, one of England’s most storied football club, Lewis has left an appreciable mark on the sports world. But beyond his ownership of the club, lies a financial empire that spans diverse industries, from real estate and biotechnology to energy and agriculture, with stakes in over 200 businesses across 13 countries.
Joe Lewis is no stranger to the art of making money. His journey to immense riches began with currency trading, where he astutely speculated on the movements of the British pound and the Mexican peso. It was in 1992 that he joined forces with the legendary George Soros, reaping monumental profits from their partnership. Bloomberg’s estimates of his net worth at over $6 billion attest to his financial acumen.
The tale of Joe Lewis’ success starts from humble beginnings in London’s East End, where he grew up above a pub. An entrepreneur at heart, Lewis played a pivotal role in transforming his father’s catering company into a thriving chain of themed restaurants. At a tender age of 15, he bid adieu to formal education, dedicating himself entirely to business endeavors. His fortunes soared, and he eventually sold his restaurant business, leading him to seek refuge in the Bahamas to evade taxes.
Throughout his illustrious career, Lewis has mostly evaded the limelight, content to focus on real estate and indulge in his love for golf. However, he occasionally re-emerges to strike high-profile deals. In the 1990s, he made waves with the acquisition of a nearly 30 percent stake in Christie’s, a prestigious auction house, before selling this investment to Franรงois Pinault, a French luxury mogul.
Beyond his love for business, Joe Lewis has a passion for the arts. His art collection boasts masterpieces by iconic artists like Picasso, Matisse, and Degas. In 2018, Lewis set a record when he sold a David Hockney piece for a jaw-dropping $90.3 million at auction, becoming the most expensive piece by a living artist to sell at that time.
However, events this week have cast a shadow on Lewis’ otherwise enigmatic legacy. This 86-year-old billionaire now faces serious charges of insider trading in the United States. US federal prosecutors allege that Lewis shared confidential and non-public information with his close associates, including personal pilots, assistants, and romantic partners. Over an eight-year span, from 2013 to 2021, Lewis is accused of passing on valuable inside information about several companies, enabling his associates to make substantial profits.
The allegations depict a web of intriguing networks through which Lewis reportedly accessed corporate boardrooms to obtain valuable insider information. Subsequently, he is said to have shared this confidential data with those close to him, tipping them off before the information became public. In one instance, he allegedly loaned his pilots $500,000 each so they could buy shares before a company’s clinical trial news hit the public domain.
Authorities further claim that in 2019, Lewis received information from members of Australian Agricultural’s board of directors about material losses due to widespread flooding. Armed with this non-public information, he allegedly called his two personal pilots, instructing them to sell their stock in the company immediately.
Why Is insider trading illegal? Because as a breach of fiduciary duty, it gives the insider an unfair advantage and disadvantages investors and traders who don’t have access to the same information. For instance, Lewis reportedly shared confidential information about another biotechnology company, Solid Biosciences, with a girlfriend during a stay at the luxurious Four Seasons Hotel in Seoul. According to the indictment, after being informed about a positive clinical trial and forthcoming fundraising, Lewis allegedly advised his girlfriend to buy $700,000 worth of shares in Solid Biosciences. The girlfriend complied, nearly exhausting her entire brokerage account on the investment. When the company eventually disclosed information about the trial, she purportedly sold her shares for a profit of approximately $849,000.
Joe Lewis is also accused of tipping two personal assistants aboard his lavish superyacht to invest in a special purpose acquisition company, BCTG, claiming that the stock could “double, triple or even quadruple.”
Prosecutors maintain that Joe Lewis’ actions were unnecessary, given his immense wealth. He was already stupendously wealthy. There is no record that he personally materially benefitted from his action. Yet, prosecutors argue that he engaged in insider trading as a means to compensate his employees and shower gifts upon his friends and lovers.
As the legal storm unfolds, the future of this enigmatic billionaire’s reputation and financial empire hangs in the balance. Joe Lewis, a man who seemingly had it all, now faces a reckoning that may define his legacy for years to come, with him risking 20 years in prison and joining the likes of Jeffrey Skilling, the once untouchable former Enron president who served 14 years in prison for insider trading.
Talk about an own goal.
