A Florida man pleaded guilty today in the Southern District of Florida for his role in an insider trading scheme that netted him over $1.6 million in illicit profits.
According to court documents, Stephen George, 54, of Parkland, was a member of the Finance Department at Celsius Holdings from November 2017 until April 7, 2023, where he held roles including vice president and controller.
Celsius is a consumer-packaged goods company headquartered in Boca Raton, Florida, that is the maker of a fitness drink and whose securities are publicly traded on the NASDAQ Stock Market.
In his role at Celsius Holdings, George received material non-public information (MNPI) regarding Celsius’ profit and revenue performance.
George’s last day of employment at Celsius Holdings was April 7, 2023. On that day, George used a Celsius Holdings computer to generate out of the company’s enterprise resource planning system a consolidated income statement showing Celsius Holdings’ financial performance for the first quarter of 2023, which George knew contained MNPI.
The income statement showed that Celsius Holdings’ first quarter of 2023 had greatly exceeded expectations. Shortly after generating the income statement, George emailed it to himself using two personal email accounts.
Beginning on April 10, 2023, the first trading day after his last day of employment with Celsius Holdings, and continuing through May 8, 2023, George purchased Celsius Holdings securities on the basis of MNPI — specifically, 20,000 shares of Celsius Holdings common stock and 300 call option contracts.
On May 9, 2023, after the market close, Celsius Holdings publicly reported better-than-expected earnings and sales for the first quarter of 2023, including an all-time quarterly record in revenue. After the public announcement, Celsius Holdings’ stock price increased significantly.
During the next trading day, May 10, 2023, George sold all 20,000 shares of common stock and 300 call option contracts, resulting in over $1.6 million in personal profits.
George pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on April 28 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
