SEC Charges Minor League Baseball Players With Insider Trading
By Ben Glickman
Regulators have charged four minor league baseball players with insider trading after they allegedly made nearly $200,000 in profit from Jack in the Box acquiring Del Taco Restaurants.
The U.S. Securities and Exchange Commission said Tuesday it had filed the insider trading charges against the one current and three former minor league players. The case relates to a 2021 deal, in which fast-food chain Jack in the Box agreed to buy Del Taco Restaurants, another restaurant chain, for $455 million.
The SEC alleged former player Jordan Qsar had received inside information from a friend who worked in finance at Jack in the Box regarding the pending deal. He allegedly then purchased Del Taco call options and informed his former teammates, who also allegedly purchased similar options.
The Jack in the Box finance employee who shared the information is not charged.
The SEC is seeking permanent injunctions, disgorgement plus prejudgement interest and civil penalties against all four defendants.
Qsar allegedly made $56,500 in profit from the call options, the SEC said. Defendant and current minor league player Grant Witherspoon allegedly made $42,800, and defendants and former minor league players Austin Bernard and Chase Lambert allegedly made $64,700 and $25,100, respectively.
Qsar, Witherspoon, Bernard and Lambert couldn't be reached for comment.
Witherspoon is currently an active player. According to the baseball statistics website Baseball Reference, in 2023 he played for the Detroit Tigers-affiliated Toledo Mud Hens and Erie SeaWolves.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 26, 2024 17:58 ET (21:58 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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