• Sat. Apr 20th, 2024

Cousins in Insider Trading Scheme Make Over $1 Million in Illegal Profits Using Confidential Kodak Information

BySamantha Nguyen

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

In February 2023, two cousins from different states pleaded guilty to insider trading after using confidential information about Eastman Kodak Co. 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 of the Lowcountry and Edward G. “Gray” Stiles of Richmond, Va.

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, Andrew Stiles began sharing confidential information about the financing with his 39-year-old Virginia cousin Edward Stiles. Edward 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, selling all of the stock shortly after and making a total of $1.2 million from the trades.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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