• Mon. Apr 15th, 2024

The Stiles Cousins Sentenced for Insider Trading in Pandemic-Related Stock Scheme

BySamantha Jones

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

In February 2023, two cousins from the Lowcountry and Richmond, Va. were charged with insider trading after using confidential information to make over $1 million in illegal profits. The hearing took place in U.S. District Court in Manhattan, where the securities fraud case was filed against James A. “Andrew” Stiles and Edward G. “Gray” Stiles.

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 Company. 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 asked for an update on July 9, 2020, in a “coded” text message regarding the film they sent off a few weeks prior to get developed. They bought approximately 130,000 shares of Eastman Kodak between June 2020 and the day the financing letter was announced and sold all of their stock shortly after for a total profit of $1.2 million.

By Samantha Jones

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