A Quiet Settlement in a High‑Profile Case
U.S. District Judge Dana Sabraw sentenced former minor league baseball players Jordan Qsar, Austin Bernard and Grant Witherspoon to probation after they pleaded guilty to conspiring to commit securities and wire fraud related to the 2021 acquisition of Del Taco by Jack in the Box.
The scheme hinged on a non‑public tip from a Pepperdine University classmate working at Jack in the Box, who passed the information to Bernard and Witherspoon, who then disseminated it to a broader network that traded on the impending deal.
Prosecutors noted that the trio collectively earned roughly $189,000, with each receiving between $56,000 and $64,000 after the stock surged 66% following the announcement, a gain that came despite their modest earnings as minor league athletes.
Qsar, now employed in technology sales and coaching youth baseball, apologized in court, expressing shame for the impact on his family, while Witherspoon, pursuing a chemical engineering degree, described a series of job rejections tied to the scandal.
Bernard, who once earned poverty‑level wages and received a $72,000 signing bonus, continues to struggle with repayment of the $72,000 plus interest owed to the SEC, citing ongoing financial hardship as he seeks new employment.
Judge Sabraw characterized the offense as "victimless" yet serious, emphasizing the defendants’ remorse, their efforts to improve themselves, and the absence of identifiable victims in the case.
The Securities and Exchange Commission’s involvement underscored the broader regulatory scrutiny of insider trading, even when the participants are not traditional corporate insiders but former athletes leveraging personal connections.