• Wed. Apr 17th, 2024

Cousins Plead Guilty to Insider Trading in Manhattan with Profits of Over $1 Million.

BySamantha Jones

Apr 4, 2024
SC and VA Cousins Accept Guilt in Trading Scheme | Business

A former pharmaceutical executive and a relative from Charleston were sentenced to insider trading in Manhattan on April 3, 2023. They pleaded guilty to using confidential information about Eastman Kodak Co. to make illegal profits of over $1 million. The hearing took place in U.S. District Court, where the securities fraud case was filed against cousins James A. “Andrew” Stiles of the Lowcountry and Edward G. “Gray” Stiles of Richmond, Va., in February 2023.

According to prosecutors, the two cousins misappropriated information related to potential government loans for Eastman Kodak Company’s production of Covid-19-related pharmaceutical components. The scheme began almost four years ago when Andrew Stiles, a 38-year-old executive at drug manufacturer Phlow Corp., was working on a pandemic-era project with Eastman Kodak. His employer was assisting Eastman Kodak in applying for a large government loan that was disclosed on July 27, 2020, in the form of a $765 million “letter of interest.”

In the days following the announcement, Kodak stock significantly increased, reaching over 2,500 percent above its closing price prior to the news. Before the loan was made public, Stiles began sharing confidential information about the financing with his 39-year-old Virginia cousin Edward Stiles via coded text messages regarding a film they sent off a few weeks prior for development. The two cousins bought approximately 130,000 shares of Eastman Kodak between June 2020 and the day the financing letter was announced and sold all their stock shortly after making a total profit of $1.2 million from their trades

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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