SC and VA Cousins Accept Guilt in Trading Scheme | Business

Investigating Cousins Accused of Securities Fraud for Insider Trades in Eastman Kodak Government Loan Scheme.

In February 2023, two cousins were charged with securities fraud for using confidential information to make over $1 million in illegal profits. James A. “Andrew” Stiles of the Lowcountry and Edward G. “Gray” Stiles of Richmond, Va., misappropriated information related to potential government loans for Eastman Kodak Company to finance the production of Covid-19-related pharmaceutical components.

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 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

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