Dive Brief:
- The former vice president and controller of Celsius Holdings, a Florida-based energy drink maker, has agreed to plead guilty to securities fraud by collecting more than $1.6 million in illegal profits trading on non-public information he took from his former employer.
- Stephen George, 54, settled the case on Tuesday, pleading guilty to securities fraud. He worked in finance for six years at Celsius Holdings, until he left the company in April 2023, and emailed himself internal data about the company’s first-quarter financial performance. Prosecutors say that over the following month George bought 20,000 shares of Celsius in online brokerage accounts, plus 300 call options.
- After Celsius reported better-than-expected sales and income, including record quarterly revenue, George sold his shares and call options contracts in May 2023, netting $1.68 million, according to documents filed in the Southern District of Florida. George faces as much as 20 years in prison when he is sentenced in April.
Dive Insight:
Goerge’s attorneys at King & Ruiz of Miami did not respond to a message Wednesday seeking comment.
Beyond a prison term, George faces up to 36 months of supervised release, a fine up to $5 million and potential forfeiture and restitution, according to the plea agreement. The plea could also affect George’s immigration status because he is not a natural born U.S. citizen, according to the plea agreement filed Tuesday with the District Court.
He joined Celsius in November 2017, and his last day at the company was April 7, 2023. Prosecutors said George, a Parkland, Florida resident, emailed himself a spreadsheet of Celsius’ financial performance for the first quarter using personal email accounts.
From April 10 to May 8, George used his material, non-public information to acquire the common stock and call options, with Celsius reporting its results to the market on May 9.
The following day, as Celsius’ shares rose on the positive financial news, George sold all of his Celsius positions, according to court documents.
Celsius, based in Boca Raton, Florida, did not respond to a message from Legal Dive seeking comment. PepsiCo invested $550 million in the company in 2022 for an 8.5% stake.
