An insider trading scheme that billionaire Joe Lewis had already pleaded guilty to his own involvement in has now drawn in Lewis's personal airplane pilot Patrick O'Connor. O'Connor has now also pleaded guilty to the same crime. The guilty plea was announced by the Manhattan US Attorney's Office, in a statement that breaks down how O'Connor used information received from Lewis about companies invested in by the Tavistock Group, the private investment firm of which Lewis is the primary owner.
Prosecutors say Lewis disclosed non-public information on these companies to his pilot, who in turn used the info to make illegal trades on the stock market. As the statement puts it:
"On one occasion, after receiving inside information from Lewis concerning Mirati Therapeutics, O'Connor wrote in a WhatsApp message to a friend that he had 'talked with Mr. Lewis,' 'we will make much more within the next 6 weeks with Mirati,' and 'think we have people who know.'"
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The press release goes on:
"Days later, O'Connor wrote to the same friend to buy Mirati and that the 'Boss [Lewis] is helping us out and told us to get ASAP.'"
In a somewhat humorous touch, the release also discloses that O'Connor messaged his friend the following: "All conversations on app is encrypted so all good. No one can ever see.'" On another occasion O'Connor texted this same friend about buying stock in MRTX, again using "inside info" from the man he sometimes referred to as "The Boss."
Now, O'Connor has pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, charges on which he faces up to 20 years in prison. Sentencing is scheduled for May.
As for Lewis, the investor already pleaded guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud in January.
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