Three current and former minor league baseball players have been charged in San Diego with insider trading involving Del Taco stock, the U.S. Attorney's Office announced Tuesday.
Jordan Joseph Qsar, 28; Grant Lee Witherspoon, 27; and Austin Lane Bernard, 28, are accused of purchasing Del Taco stock after Qsar learned that Jack in the Box was acquiring Del Taco, then selling the shares for an illegal profit, according to a federal indictment unsealed Tuesday.
"According to the indictment, after Jack in the Box and Del Taco went public with the acquisition on Dec. 6, 2021, Del Taco stocks jumped in price from $7.53 to $12.51 per share — representing a 66% increase from the prior trading day’s closing price," according to a news release sent out by the U.S. Attorney's office
Qsar allegedly learned of the acquisition through a friend who personally worked on the Del Taco deal as a senior associate in Jack in the Box's strategic finance department, prosecutors said.
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Qsar then allegedly shared that information with Witherspoon and Bernard, whom he knew through playing minor league baseball in the Tampa Bay Rays' system and college baseball at Pepperdine University.
The trio then allegedly purchased Del Taco stock and sold it in the days after the acquisition went public in late 2021, netting them between $41,800 and $64,600 each. Officials also said they tipped others off with the insider information.
"The system has to be fair for everyone, or the market fails," San Diego U.S. Attorney Tara McGrath said in a statement. "Those who seek to undermine this system for personal gain will face consequences."
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The ballplayers face charges ranging from conspiracy to securities fraud to aiding and abetting wire fraud.
“Insider trading directly affects the integrity of our economy,” said FBI San Diego Special Agent in Charge Stacey Moy. “We will continue to work with our federal, state, and local law enforcement partners to ensure people who intentionally undermine and threaten our economy will be brought to justice.”
