ORLANDO, Fla. — A former SeaWorld attorney pleaded guilty to a securities fraud charge as part of an insider-trading scheme, according to federal court records.
In court records, prosecutors said Paul Powers bought 18,000 shares of SeaWorld stock last August for around $385,000 after becoming privy to information that the company planned to announce better-than-expected revenue and attendance in the months prior.
The company also announced that attendance to SeaWorld’s theme parks jumped 4.8 percent over 2017.
“We believe that these results were driven by our new strategic pricing strategies, new marketing and communication initiatives and a positive reception of our new rides attractions and events,” said John Reilly, SeaWorld CEO at the time. "We are confident in the direction we are heading, and we are encouraged by the results that we are seeing in our business."
Following the announcement, SeaWorld’s stock value increased by 17 percent—from $21.13 a share on Aug. 3 to $25.40 on Aug. 6.
Prosecutors said in court filings that Powers sold all 18,000 shares on Aug. 6, making around $64,645 in profit.
Prosecutors said Powers made the purchases and sales without seeking approval from SeaWorld’s general counsel and was prohibited from trading SeaWorld stock at the time under company policy, court records show.
“After being contacted by authorities late last year, the Company conducted an investigation, which resulted in termination. The Company cooperated fully with the authorities in their investigation,” a spokeswoman for SeaWorld said in a statement.
Powers pleaded guilty to securities fraud as part of an agreement with prosecutors filed in federal court Monday.
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