MIAMI, Fla. — A Florida man has pleaded guilty to securities fraud in connection with an insider trading scheme that netted him more than $1.6 million in profits, according to the U.S. Attorney’s Office for the Southern District of Florida (USAO).
Stephen George, 54, of Parkland, formerly served as vice president and controller at a Boca Raton-based consumer packaged goods company, referred to in court documents as Company A. The company, a maker of a popular fitness drink, is publicly traded on the NASDAQ Stock Market.
Prosecutors said Mr George used his access to material non-public information (MNPI) during his tenure at Company A to benefit financially. On his last day of employment, April 7, 2023, Mr George reportedly accessed an internal income statement that revealed stronger-than-expected quarterly earnings. He emailed the document to himself using personal accounts.
Starting on April 10, 2023, and continuing until May 8, 2023, Mr George purchased 20,000 shares of Company A stock and 300 call option contracts. After Company A publicly announced record-breaking earnings on May 9, its stock price surged. Mr George then sold all his holdings on May 10, generating over $1.6 million in profits.
He pleaded guilty to one count of securities fraud and faces a maximum sentence of 20 years in prison. Sentencing is scheduled for April 28.
The FBI Miami Field Office led the investigation, with assistance from the Financial Industry Regulatory Authority. The case is being prosecuted by Assistant U.S. Attorneys Eli S. Rubin and Elizabeth Young, as well as trial attorneys Matthew F. Sullivan and Matt Kahn from the Justice Department’s Criminal Division Fraud Section.
According to the USAO, the case follows a separate insider trading prosecution in the Southern District of Florida, where three individuals recently pleaded guilty to earning more than $1.1 million in illicit profits based on confidential acquisition information.
