Two cousins plead guilty to insider trading of Kodak stock
ROCHESTER, N.Y. (WROC) — A pharmaceutical executive and his cousin pleaded guilty to an insider trading scheme involving Kodak stock, according to the Department of Justice.
James Andrew Stiles and Edward Gray Stiles pleaded guilty on Wednesday to securities fraud based on insider trading.
Investigators found between June and July 2020, Andrew Stiles misappropriated private information and used it to trade in Eastman Kodak Company’s stock. He also shared that information with Gray Stiles for trade.
Andrew Stiles was an executive at a pharmaceutical company working with Kodak during the COVID-19 pandemic. The company was helping Kodak apply for a loan of $765 million. Kodak’s stock then rose before the news.
During this time, Andrew Stiles kept up to date on Kodak’s work to get the loan and passed information to Gray Stiles. Andrew Stiles bought 90,000 shares of stock and Gray Stiles bought over 30,000. Before the loan was expected to be secured, they each bought over 10,000 additional shares.
“Andrew Stiles betrayed the trust and confidence of his employer by stealing confidential business information and using it alongside his cousin, Gray Stiles, to make unlawful trades in Kodak’s stock based on inside information,” US Attorney Damian Williams said in a statement. “Even secret codes and lies to regulators could not stop them from getting caught. No one is above the law, and this Office’s commitment to protecting the integrity of the financial markets remains a priority.”
The loan was then put on hold as an investigation was launched into insider trading, which led to Kodak’s shares dropping. The two cousins were arrested in 2023. They each face a maximum sentence of 20 years in prison.
