Former Corporate VP in Boca Raton Convicted of Insider Trading

A former corporate vice president in Boca Raton has been found guilty of engaging in insider trading and could face up to 20 years in federal prison. Stephen George from Parkland entered a guilty plea after profiting over $1.6 million through illegal trading activities.

The accused, who previously held positions at the Celsius beverage company in Boca Raton, accessed confidential financial information about the company. George was employed in the Finance Department at Company A from November 2017 until April 7, 2023, serving as both vice president and controller during his tenure. Company A, a publicly traded consumer-packaged goods company known for a fitness drink, faced severe financial misconduct due to George’s actions.

Upon leaving his position at the company on April 7, 2023, George unlawfully obtained inside data showing strong financial performance for the first quarter of that year. Armed with this material non-public information (MNPI), he transferred the income statement to his personal email accounts. Subsequently, on April 10, 2023, George initiated the purchase of 20,000 shares of common stock and 300 call option contracts based on the privileged data. After Company A publicly declared its extraordinary earnings and sales data for the first quarter of 2023 on May 9, 2023, the stock prices soared. This allowed George to make personal profits exceeding $1.6 million by selling his acquired securities soon after the announcement.

Following his arrest, George pleaded guilty to securities fraud and faces a maximum sentence of two decades in prison, set to be determined by a federal district court judge on April 28. The U.S. Attorney Office for the Southern District of Florida highlighted that George’s actions directly violated securities laws, leading to his arrest and prosecution. The case obtained invaluable support from the FBI Miami Field Office and the Financial Industry Regulatory Authority’s Criminal Prosecution Assistance Group.

In an interesting turn of events, George’s plea comes shortly after similar insider trading cases surfaced in the region. Notably, another federal investigation uncovered several individuals profiting off illegal trading activities, amounting to over $1.1 million in illicit gains. Despite George’s allegations, Celsius beverage company (Company A) emerged unscathed and was not implicated in any wrongful activities during this case.

The unfolding events underline a severe need for stringent monitoring and regulatory measures to prevent insider trading within corporations. George’s case serves as a warning to others who might be tempted to engage in unethical and illegal trading practices, facing severe legal consequences and potential lengthy prison sentences.