Jordan Qsar, Grant Witherspoon, Austin Bernard, and Chase Lambert

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26186 / December 5, 2024

Securities and Exchange Commission v. Jordan Qsar, Grant Witherspoon, Austin Bernard, and Chase Lambert, No. 3:24-cv-00570 (S.D. Cal. filed March 26, 2024)

SEC Obtains Final Judgment Against Jordan Qsar, Austin Bernard, and Grant Witherspoon in Connection with Insider Trading

On November 18, 2024, the Securities and Exchange Commission obtained a final judgment against Jordan Qsar. Austin  Bernard and Grant Witherspoon, all former minor league baseball players the SEC charged with insider trading in advance of the December 6, 2021 announcement that Jack in the Box Inc. would acquire Del Taco Restaurants, Inc.

The complaint alleges that Jordan Qsar learned about the acquisition from a friend and former teammate who was working on the acquisition at Jack in the Box. Qsar traded on the inside information and tipped Bernard and Witherspoon, who used the information to purchase Del Taco call options. According to the complaint, Qsar made about $56,500 in illegal trading profits, Bernard made approximately $64,700 and Witherspoon made approximately $42,800.

Qsar consented to a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder. Qsar was ordered to pay disgorgement in the amount of $56,470.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $9,986.60. Qsar was also ordered to pay a civil penalty in the amount of $63,194.00.

Bernard consented to a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Bernard was ordered to pay disgorgement in the amount of $ 64,693.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $ 11,440.82. Bernard was also ordered to pay a civil penalty in the amount of $86,877.00.

Witherspoon consented to a final judgment permanently enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Witherspoon was ordered to pay disgorgement in the amount of $42,768.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $7,563.44. Witherspoon was also ordered to pay a civil penalty in the amount of $48,143.00.

The case originated from the SEC’s Market Abuse Unit’s Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.

The SEC’s litigation was led by Charles Canter and supervised by Douglas M. Miller of the Los Angeles Regional Office. The SEC’s investigation was conducted by Sara Kalin of the Market Abuse Unit, with assistance from John Rymas of the Market Abuse Unit’s Analysis and Detection Center.  It was supervised by Assistant Regional Director Diana Tani and Market Abuse Unit Chief Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority (FINRA).