[ad_1]
Damian Williams, the USA Lawyer for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Cost of the New York Subject Workplace of the Federal Bureau of Investigation (“FBI”), introduced right this moment the unsealing of an Indictment charging JAMES ANDREW STILES, a/ok/a “Andrew Stiles,” and EDWARD GRAY STILES, a/ok/a “Grey Stiles,” with a number of counts of securities fraud and conspiracy to commit each wire fraud and securities fraud in reference to a scheme to commit insider buying and selling primarily based on misappropriated details about potential authorities loans to be made to the Eastman Kodak Firm to finance the manufacturing of COVID-19-releated pharmaceutical elements. ANDREW STILES was arrested this morning in South Carolina, and GRAY STILES was arrested this morning in Virginia.
U.S. Lawyer Damian Williams mentioned: “By stealing confidential enterprise info, Andrew Stiles allegedly betrayed the belief and confidence of his employer — a pharmaceutical firm working to assist the general public on the peak of the COVID-19 pandemic — and schemed along with his cousin, Grey Stiles, to collectively make greater than 1,000,000 {dollars} of unlawful income. At this time’s arrests present that this Workplace will proceed to prosecute those that search to revenue on the expense of the integrity and equity of our monetary markets.”
FBI Assistant Director Michael J. Driscoll mentioned: “As alleged, the defendants are the newest examples of legal actors counting on materials personal info to commerce securities for their very own revenue. When people motivated by greed illegally tip the scales of their favor, public confidence within the integrity of our monetary markets is eroded. Investigating and holding accountable the perpetrators of those schemes stays a precedence for the FBI.”
In response to the allegations within the Indictment unsealed in Manhattan federal courtroom:[1]
Between June and July 2020, ANDREW STILES performed an insider buying and selling scheme by which he misappropriated materials, personal info (“MNPI”) and used it to commerce within the inventory of the Eastman Kodak Firm (“Kodak”) and additional offered that MNPI to his cousin, GRAY STILES, in order that GRAY would likewise commerce on the MNPI.
Throughout that point, ANDREW STILES was an govt at an organization (“Firm-1”) that was working with Kodak to collaborate on the manufacturing of chemical compounds for pharmaceutical manufacturing in reference to the COVID-19 pandemic. Firm-1 was additionally aiding Kodak in its utility for a big authorities mortgage, which in the end resulted within the information, on July 27, 2020, of a authorities “letter of curiosity” to offer Kodak with a mortgage of $765 million (the “LOI”). Within the following days, Kodak inventory rose considerably, at one level rising to greater than 2,500% above the closing worth previous to the information of the LOI.
Throughout June and July 2020, ANDREW STILES was stored apprised of Kodak’s efforts to acquire the federal government mortgage, and he each traded utilizing that private info and handed that info to GRAY STILES. For instance, on July 9, 2020, when Kodak had utilized for a mortgage within the quantity of $655 million, ANDREW STILES and GRAY STILES exchanged the next coded textual content messages:
GRAY: Any replace on the movie we despatched off just a few weeks in the past to get developed
ANDREW: 600+. Perhaps 2 weeks out
GRAY: I can stay with that hahaha
Between June 2020, after ANDREW STILES discovered concerning the potential mortgage to Kodak, and July 27, 2020, the date the LOI was first publicized, ANDREW STILES bought greater than 90,000 shares of Kodak inventory, together with a number of purchases the day earlier than the LOI was scheduled to be introduced. GRAY STILES bought greater than 30,000 shares, greater than half of which have been bought the day previous to the scheduled announcement of the LOI. Actually, on July 27, 2020, ANDREW STILES texted GRAY STILES, “Tmw,” indicating the anticipated date of the announcement. Lower than one minute later, GRAY STILES responded, “Sizzling rattling.” Following that change, and earlier than the information was introduced, ANDREW and GRAY STILES every bought greater than 10,000 further shares.
ANDREW and GRAY STILES every offered everything of their shares within the days and weeks after the announcement. ANDREW STILES realized income of greater than $500,000; GRAY STILES realized income of greater than $700,000.
* * *
ANDREW STILES, 37, of South Carolina, and GRAY STILES, 37, of Virginia, are every charged with three counts of securities fraud, every of which carries a most sentence of 20 years in jail, and one rely of conspiracy to commit wire fraud and securities fraud, which carries a most sentence of 5 years in jail.
The statutory most penalties on this case are prescribed by Congress and are offered right here for informational functions solely, as any sentencing of the defendants can be decided by a choose.
Mr. Williams praised the excellent work of the FBI.
This case is being dealt with by the Workplace’s Securities and Commodities Fraud Process Power. Assistant U.S. Attorneys Alex Rossmiller, Nicolas Roos, and Allison Nichols are in command of the prosecution.
The costs contained within the Indictment are merely accusations, and the defendants are presumed harmless until and till confirmed responsible.
[1] Because the introductory phrase signifies, everything of the textual content of the Indictment and the outline of the Indictment set forth on this launch represent solely allegations, and each truth described must be handled as an allegation.
[ad_2]
Source link