SEC Charges Investor Joseph C. Lewis and Associates with Insider Trading

The Securities and Exchange Commission today charged investor Joseph C. Lewis for illegally tipping material nonpublic information to his then-girlfriend, Carolyn W. Carter, as well as his two private pilots, Patrick J. O’Connor and Bryan L. Waugh, so that each would use this information to execute trades. The SEC also charged Carter, O’Connor, and Waugh with using that information to trade and reap combined profits of more than $545,000. According to the SEC’s complaint, Lewis, a British national who resides principally in The Bahamas, controls and is majority owner of a biotechnology investment fund, from which he often received material nonpublic information concerning the fund’s portfolio companies.