A Deal That Turned Into a Tip
In December 2021, Del Taco announced a $575 million acquisition by Jack in the Box, a transaction that would send its shares soaring. Two of the company’s former minor league teammates, Austin Lane Bernard and Grant Lee Witherspoon, received a confidential tip from their colleague Jordan Joseph Qsar about the pending deal.
Acting on the insider knowledge, the pair purchased Del Taco stock before the public announcement, reaping illegal gains of $64,600 and $42,000 respectively. The profit windfall was amplified when Bernard and Witherspoon relayed the tip to a broader network of 19 additional individuals, collectively generating roughly $325,000 in illicit proceeds.
Judge Sabraw’s Assessment
U.S. District Judge Dana Sabraw ultimately imposed a time‑served sentence, describing the conduct as a “victimless crime” that stemmed from personal friendship rather than a calculated scheme. While acknowledging the seriousness of insider trading, the judge emphasized the defendants’ clean records and the absence of a prison term.
Federal prosecutors had recommended no incarceration, citing the men’s conduct over more than two years of pretrial release and their cooperation with investigators. The Securities and Exchange Commission filed parallel civil charges, seeking restitution of the illegal profits plus interest.
Qsar, who expressed deep remorse in court, confirmed that he had repaid his share of the gains, while Bernard, currently job‑searching, has yet to settle his obligations. Witherspoon, now employed in sales and pursuing a chemical engineering degree, said the conviction has cost him several employment opportunities.
The case underscores how even seemingly minor breaches of market integrity can emerge from personal relationships, and it serves as a reminder that the law treats insider trading as a punishable offense regardless of the motive.