A former high-ranking executive at a publicly traded company in Florida has pleaded guilty to insider trading. Stephen George, who worked as a vice president and controller at Company A, is now facing serious consequences after using confidential information to illegally make over $1.6 million in profits. George, 54, of Parkland, Florida, admitted to breaking the law in connection with his time at the consumer-packaged goods company.
Company A, which is based in Boca Raton, Florida, makes a popular fitness drink and is listed on the NASDAQ Stock Market. George’s role at the company involved him receiving important financial information that was not yet public. This insider knowledge helped him make decisions that allowed him to profit unfairly. The case has now been brought to light and is being investigated by the FBI.
How the Insider Trading Scheme Unfolded
Stephen George had access to private, non-public information about Company A while working in the finance department. In fact, he was one of the top executives at the company. Between November 2017 and April 2023, George worked in various important roles, including vice president and controller. These positions gave him special access to the company’s financial reports, which included details about how well the company was doing financially.
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Before his departure from Company A on April 7, 2023, George used a company computer to access a highly confidential financial report. This report showed that Company A had exceeded its financial goals for the first quarter of 2023. George knew that this information was valuable and that it could cause the company’s stock price to go up once it was publicly announced. Instead of keeping the information to himself, he decided to act on it.
On his last day at Company A, George sent the report to himself using two personal email accounts. This was done so that he could use the information to buy stock in the company once he was no longer employed there. According to the law, it is illegal for anyone who has access to private financial information to trade stocks based on that information before it becomes public.
The Trading and the Profits
The very next week, on April 10, 2023, the first day after leaving the company, George started buying shares of Company A’s stock. He did not just buy a few shares; he purchased a large number of 20,000 shares of Company A stock. But that wasn’t all. He also bought 300 call option contracts, which are a type of investment that allows the buyer to profit if the company’s stock price rises.
George’s plan worked perfectly. On May 9, 2023, Company A released its financial results for the first quarter of 2023, and the company’s performance was much better than expected. The company reported record sales and strong earnings, which caused its stock price to increase significantly.
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The very next day, on May 10, 2023, George sold all of the 20,000 shares of stock and the 300 call option contracts. He made an astounding $1.6 million in profits from this illegal activity. George had used his inside knowledge to make huge financial gains, but his actions did not go unnoticed.
The Legal Consequences
Stephen George has now pleaded guilty to one count of securities fraud, which is a serious crime. Securities fraud is when someone lies or deceives others in order to make money in the stock market. In this case, George used confidential information that he was not allowed to share, and he used it to his advantage in the stock market.
George is scheduled to be sentenced in court on April 28, 2025. He could face a maximum prison sentence of 20 years if the judge decides to impose the maximum penalty. A federal judge will determine his sentence after considering the law and the facts of the case.
This case highlights how serious the crime of insider trading is. It also shows how companies and government agencies, like the FBI, are actively investigating illegal activities in the stock market. When individuals like George break the law to make money at the expense of others, they will face the consequences.
