A Florida man was sentenced yesterday in the Southern District of Florida to 13 months’ imprisonment and a $10,000 fine for his role in an insider trading scheme that netted over $1.6 million in profits.
He was also ordered to pay over $200,000 in restitution and over $1.6 million in forfeiture.
According to court documents, from November 2018 to April 2023, Stephen George, 54, of Parkland, was a member of the finance department and held roles including controller and vice president at a consumer-packaged goods company headquartered in Boca Raton, Florida (Company A).
The company was the maker of a fitness drink whose securities were publicly traded on the NASDAQ Stock Market. At Company A, George received material non-public information (MNPI) regarding the company’s financial performance.
On his final day at Company A on April 7, 2023, George created a consolidated income statement showing its financial performance for the first quarter of 2023, which George knew contained MNPI. The income statement showed that the company’s first quarter results had greatly exceeded expectations. George then emailed the document to himself using two personal email accounts.
On April 10, 2023, the first trading day after his last day of employment, and continuing through May 8, 2023, George purchased Company A securities based on MNPI – specifically, 20,000 shares of common stock and 300 call option contracts.
On May 9, 2023, after the market closed, Company A 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, its stock price increased significantly. During the next trading day, George sold all 20,000 shares of common stock and 300 call option contracts, resulting in over $1.6 million in personal profits.
In February 2025, George pleaded guilty to one count of securities fraud.
