A Florida man has admitted guilt in an insider trading scheme that earned him over $1.6 million in illegal profits. Stephen George, 54, from Parkland, was a part of the Finance Department at Company A, a consumer-packaged goods company based in Boca Raton, Florida. He held positions including vice president and controller until April 7, 2023.
According to court documents, George accessed confidential financial information about Company A's performance for the first quarter of 2023 on his last day at work. The data indicated that the company's earnings had exceeded expectations. He then emailed this information to himself using personal email accounts.
Starting April 10, 2023, George used this non-public information to buy Company A securities. He acquired 20,000 shares of common stock and 300 call option contracts before Company A announced its better-than-expected earnings on May 9, which led to a significant increase in stock price. On May 10, he sold all his holdings for over $1.6 million in profit.
George has pleaded guilty to one count of securities fraud and is scheduled for sentencing on April 28. He could face up to 20 years in prison as determined by a federal district court judge after considering various guidelines and factors.
The announcement was made by U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Supervisory Official Antoinette T. Bacon from the Justice Department’s Criminal Division; and Acting Special Agent in Charge Justin E. Fleck from the FBI Miami Field Office.
The case was investigated by the FBI Miami Field Office with assistance from the Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group.
Prosecutors include Assistant U.S. Attorneys Eli S. Rubin and Elizabeth Young for the Southern District of Florida and Trial Attorneys Matthew F. Sullivan and Matt Kahn from the Criminal Division’s Fraud Section with asset forfeiture handled by Assistant U.S. Attorney Nicole Grosnoff.
This plea follows three other guilty pleas related to insider trading involving Federico Nannini and others who profited illegally through trades based on acquisition plans they learned about through consulting work.
Further details can be found on websites related to the United States Attorney’s Office for the Southern District of Florida or the District Court for the Southern District of Florida.