SC and VA Cousins Accept Guilt in Trading Scheme | Business

In February 2023, two cousins were charged with insider trading after they used 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.”

Andrew began sharing confidential information about the financing with his cousin Edward Stiles, who 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.

On April 3rd this year, both men pleaded guilty to insider trading charges stemming from their use of confidential information related to potential government loans for Eastman Kodak Company to finance the production of Covid-19-related pharmaceutical components.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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