Premier League under scrutiny as Lewis admits fraud while Spurs owner

The league remains confident they have proof that Lewis no longer involved in Tottenham’s ownership in any way

The Premier League is confident it can prove Joe Lewis is no longer involved at Tottenham amid fresh scrutiny after he admitted fraud in New York.
“Enhanced due diligence” in 2022 includes unspecified documents which the top tier believes rules out any Lewis influence since handing over the club to a trust months before being charged. That is likely to include legally binding guarantees from current board members, legal experts speculate.
However, as Lewis admitted insider trading and securities fraud in Manhattan on Wednesday, politicians and financial specialists said further proof may be required.
Lewis, who founded ongoing majority shareholder ENIC Sports Inc, ceased personal involvement in October 2022 in favour of what Tottenham describe as a “family discretionary trust”.
Approval from the Premier League came nine months before it emerged Lewis faced insider trading charges. The 86-year-old appeared in court in New York to admit three of the charges on condition he would avoid a jail sentence.
When he was indicted in July last year, federal prosecutors accused him of orchestrating “a brazen insider trading scheme” and passing secrets to a personal assistant, girlfriends and other friends as well as two alleged co-conspirators, pilots Patrick O’Connor and Bryan Waugh. They also entered not guilty pleas last July.
However, on Wednesday, Lewis apologised to the US District Judge, Jessica Clarke. “I am so embarrassed and I apologise to the court for my conduct,” he said.
Lewis will be sentenced on March 28, but was released for now thanks to a $300 million bond secured against his yacht and private aircraft. The terms of his bail prevent him from travelling outside the US and using his yacht. He can only use his aircraft to attend court hearings.
While there is no suggestion that an imminent conviction for Lewis will affect Tottenham, Malcolm Clarke, chairman of the Football Supporters Association, and Clive Efford MP, a member of the CMS committee, said an independent regulator will offer a transparent alternative for reviewing ownership credentials.
“I think this is exactly why we need a football regulator with the resources, know-how and powers to investigate in these situations, and if necessary, take away the right to own shares,” said Efford, with further details of government legislation expected in the next week.
Gerry Sutcliffe, the former sports minister, added the top tier “needs firmer guarantees that he’s not involved, to make sure its fit and proper persons test holds up”.
“It’s getting more worrying about the amounts of money PL clubs are dealing with and why a football regulator is necessary to protect fans interests,” he added.
A senior figure in financial regulation said that Lewis had effectively exploited a “loophole” to keep Tottenham safe.
The source, speaking on condition of anonymity, said: “A question for the Premier League, the EFL and the proposed IREF – if an owner runs into difficulty, can they just transfer ownership to a family trust? Seems a pretty big loophole.”
The US Attorney’s Office refused to confirm whether Lewis’s financial dealings at Tottenham were part of “ongoing investigations” when contacted by Telegraph Sport.
Tottenham and chairman Daniel Levy declined to comment, but in July last year a club spokesperson said: “The owner of Tottenham Hotspur Football Club is ENIC, with majority control held by a Family Discretionary Trust of which Mr Joseph Lewis is not a beneficiary.
“The Trust is managed by two independent professional trustees on behalf of its beneficiaries. Mr Lewis ceased to be a person with significant control of the Club in October 2022.
“This is a US legal matter unconnected with the Club and as such have no comment.”
Mark Herr, Lewis’ attorney, said on Wednesday: “Today, Joe Lewis acknowledged his conduct in connection with a number of stock trades by individuals close to him. Mr Lewis did not engage in improper trading in his own accounts. His conduct should be viewed in the context of Mr. Lewis’ long life of accomplishment and integrity. Soon to be 87, Mr. Lewis is deeply sorry, embarrassed, and apologies to the court, his family, and all those who have come to rely on him.”
ENIC own 86.58 per cent of Spurs shares, 70.12 per cent of which are now controlled by the Lewis Family Trust, which includes family members of Lewis’s. The remaining 29.88 per cent of ENIC’s stake is owned by chairman Daniel Levy, while the remaining 12.42 per cent of club ownership is made up of smaller shareholders.
Judge Clarke said she would sentence Lewis on March 28 after she had reviewed an agreement by Lewis’ attorney David Zornow and the government, and agreed to a condition that Lewis would have the right to withdraw his guilty plea if he is given a custodial sentence.
Under federal sentencing guidelines, Lewis faces 45 years in prison and $5 million (£3.92 million) fine. Lewis will not plead guilty to lesser counts against him under the terms of his deal, Clarke said she may consider them for sentencing purposes.
Separately, his Bahamas-based company Broadbay pleaded guilty to participating in the scheme and was hit with a $15 million fine and $35 million forfeiture.
Lewis, who appeared frail, was questioned whether he was of sound mind and health before Judge Clarke agreed to accept his guilty plea. To each question he answered “Yes, your honour.” He was warned that his plea could affect his US immigration status, including deportation.
Outside the court, a spokesman for Lewis said the businessman had “acknowledged his conduct in connection with a number of stock trades by individuals close to him.”