The U.S. Securities and Exchange Commission recently entered into settlements with Brian Waugh and Patrick O’Connor, two private pilots for British billionaire investor Joseph Lewis, to resolve civil charges of insider trading. Lewis is the founder of international private investment organization, Tavistock Group, and the majority owner of a biotechnology investment fund that reportedly provided him with access to material nonpublic information relating to numerous companies. According to a final judgment filed in the Southern District of New York on February 4, 2026, Waugh agreed to resolve the SEC’s claims by paying more than $132,000 to disgorge his ill-gotten gains, approximately $22,000 in prejudgment interest, and a civil penalty of more than $33,000. In a separate settlement filed on February 4, 2026, O’Connor was ordered to pay disgorgement of almost $172,000 and prejudgment interest of more than $29,000, but ultimately agreed to pay the SEC just over $45,000 to offset a payment of $180,244.04 that O’Connor agreed to forfeit in connection with a related criminal case.
On July 26, 2023, the SEC charged Lewis, Waugh, O’Connor, and Carolyn Carter, Lewis’s former girlfriend, with insider trading for making securities trades based on tips received from Lewis. The SEC also charged O’Connor’s spouse, Jean O’Connor, as a relief defendant as some of O’Connor’s trades were allegedly placed from a brokerage account in her name. The SEC accused Waugh and O’Connor of purchasing securities in one of Lewis’s portfolio companies, in 2019, after receiving MNPI from Lewis regarding positive results the company received in connection with a clinical trial. Carter also allegedly purchased securities based on this tip, and the three allegedly generated collective profits of approximately $373,000. Lewis allegedly gifted the tip to Waugh and O’Connor along with a $500,000 loan each to enable them to execute trades as a substitute for a formal retirement plan.
Waugh and O’Connor are the final two defendants in the case to reach settlements with the SEC. In November 2024, Lewis settled with the SEC agreeing to pay a civil penalty of more than $1.6 million. In February 2025, Carter also reached a settlement in which she agreed to pay disgorgement of more than $241,000, almost $44,000 in prejudgment interest, and a civil penalty of approximately $525,000. On February 11, 2026, the SEC also filed a notice requesting the voluntary dismissed all claims, with prejudice, against relief defendant Jean O’Connor.
On July 26, 2023, the U.S. Attorney’s Office for the Southern District of New York also announced the filing of parallel criminal charges against Lewis, Waugh, and O’Connor for their roles in the insider trading scheme. In a 19-count indictment, federal prosecutors accused Lewis of not only misappropriating the MNPI of several companies by sharing tips with his friends and colleagues but also underreporting his ownership interest in certain companies, which allegedly enabled him to evade certain government reporting requirements. In January 2024, Lewis pleaded guilty to two counts of securities fraud and one count of conspiracy to commit securities fraud for his role in the scheme. In April 2024, he was sentenced to three years of probation and ordered to pay a $5 million fine. He was also ordered, in January 2025, to pay restitution of $400,000. In November 2025, Lewis was pardoned by President Trump.
In June 2024, O’Connor resolved the criminal charges by pleading guilty to conspiracy to commit securities fraud. He was sentenced to 3 years of probation and ordered to pay a $75,000 fine. O’Connor also agreed, in November 2024, to forfeit $180,244.04 (the amount of proceeds derived from the scheme). Waugh pleaded guilty to tax evasion in December 2024, and was sentenced to 3 years of probation. He was ordered to pay a $25,000 fine.
Final Judgment – O’Connor | Final Judgment – Waugh | Final Judgment – Lewis | Final Judgment – Carter | SEC Notice of Voluntary Dismissal | SEC Press Release – July 26, 2023 | USAO SDNY Press Release – July 26, 2023 | Docket Entries – Criminal Case | Order of Forfeiture – O’Connor | DOJ Office of the Pardon Attorney – List of Pardons