Connect with us

Published

on

British billionaire Joe Lewis has avoided a jail sentence after admitting he orchestrated an insider trading scheme that helped those around him make millions.

The former Tottenham Hotspur owner, who lives in the Bahamas, tipped off his girlfriend, friends, and two of his private pilots with inside information on four publicly-traded companies, which they used to get rich, prosecutors in New York said.

In January, he pleaded guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud, admitting in court he had known he was breaking the law.

But prosecutors had said he deserved leniency because of his age, bad health and willingness to come to the US to face the charges, rather than force a protracted extradition battle.

FILE PHOTO: British billionaire and Tottenham Hotspur owner Joe Lewis at the United States Courthouse in New York City
Image:
Lewis pictured after a court appearance last July. Pic: Reuters

In court on Thursday, the 87-year-old was sentenced to three years’ probation and fined $5m (£4m).

Before he was sentenced, Lewis spoke briefly, saying: “Your honour, I’m here today because I made a terrible mistake.

“I’m ashamed.”

More from US

Lewis said he hoped “to make amends and to rebuild the trust that I have squandered” in the remainder of his life.

British billionaire Joe Lewis, whose family trust owns Tottenham Hotspur football club, arrives to the United States Courthouse in Manhattan to be sentenced in a New York court, after pleading guilty in January to insider trading charges in New York, U.S., April 4, 2024. REUTERS/Eduardo Munoz
Image:
Lewis on his arrival at court for sentencing. Pic: Reuters

Read more:
From humble beginnings in London’s East End to billionaire insider trader

Premier League clubs dominate football’s top money makers

Lewis founded Bahamas-registered investment firm Tavistock Group and is one of the 500 richest people in the world, according to the US government.

His fortune is estimated at $6.2bn (£4.9bn), including homes in several countries, a $250m yacht, private planes worth $90m and a $100m art collection.

Lewis held a majority stake in Premier League football club Spurs for more than two decades, a shareholding now owned by a trust on behalf of his family.

From the beginning, it was clear Lewis would not be any ordinary defendant – after his initial arrest, he was released on $300m (£237m) bail after putting up his yacht and plane as collateral.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Prosecutors said he learned about public companies after making large investments and on at least four occasions between 2019 and 2021, he tipped off those close to him.

“This insider trading was not the result of aberrant, one-time conduct but rather a troubling pattern of misconduct over the course of several years,” they said.

His motive was unclear but prosecutors said it was possibly down to “hubris, ego, a desire to make a financial gift without parting with his own money, an irrational form of greed, or some other reason”.

Continue Reading

US

Demolition work begins on White House East Wing for Trump’s £186m ballroom

Published

on

By

Demolition work begins on White House East Wing for Trump's £186m ballroom

Demolition on parts of the White House’s East Wing has begun in order to build Donald Trump’s new ballroom.

On Monday, builders were seen tearing down the facade of the building.

The US President, who insists the $250million (£186m) ballroom will be paid for by himself and donors, said in July it would not interfere with the existing landmark.

The East Wing was built at the beginning of the last century and was last modified in 1942.

Mr Trump said in July: “It will be beautiful. It won’t interfere with the current building. It won’t be – it will be near it, but not touching it. And pays total respect to the existing building, which I’m the biggest fan of. It’s my favourite.”

Mr Trump confirmed on Monday that ground had been broken on the project, despite lacking approval for construction from the federal agency that oversees such projects.

Windows of the complex could be seen being torn down. Pic: Reuters
Image:
Windows of the complex could be seen being torn down. Pic: Reuters

Photos of the demolition work showed construction equipment tearing into the East Wing façade and windows and other building parts in tatters on the ground.

He added that future parties would start with cocktails in the East Room, before they are taken into the “finest” ballroom in the country.

It will also boast views of the Washington Monument with room for 999 people, he added. Other estimates have claimed it will house some 600 people.

Read more:
Ukraine can’t win war, says Trump
US airstrike destroyed ‘drug-carrying submarine’, says Trump

On his social media platform, Truth Social, he said: “Completely separate from the White House itself, the East Wing is being fully modernised as part of this process, and will be more beautiful than ever when it is complete!”

Trump has also claimed on social media that the project would be completed “with zero cost to the American Taxpayer! The White House Ballroom is being privately funded by many generous Patriots, Great American Companies, and, yours truly”.

Earlier this year, Trump said they have “wanted a ballroom” in the White House for 150 years.

“There’s never been a president that was good at ballrooms,” he said. “I’m good at building things and we’re going to build quickly and on time. It’ll be beautiful, top, top of the line.”

Since being in office, Mr Trump has made a number of changes to the White House.

He has hand-picked gold ornamentation for the Oval Office and has redone the Rose Garden.

A former Republican member of Congress, Joe Walsh, called the latest plans an “utter desecration”, and said if he became president would take “a bulldozer” to the ballroom.

Continue Reading

US

Inside ‘data centre alley’ – the biggest story in economics right now

Published

on

By

Inside 'data centre alley' - the biggest story in economics right now

If you ever fly to Washington DC, look out of the window as you land at Dulles Airport – and you might snatch a glimpse of the single biggest story in economics right now.

There below you, you will see scattered around the fields and woods of the local area a set of vast warehouses that might to the untrained eye look like supermarkets or distribution centres. But no: these are in fact data centres – the biggest concentration of data centres anywhere in the world.

For this area surrounding Dulles Airport has more of these buildings, housing computer servers that do the calculations to train and run artificial intelligence (AI), than anywhere else. And since AI accounts for the vast majority of economic growth in the US so far this year, that makes this place an enormous deal.

Down at ground level you can see the hallmarks as you drive around what is known as “data centre alley”. There are enormous power lines everywhere – a reminder that running these plants is an incredibly energy-intensive task.

This tiny area alone, Loudoun County, consumes roughly 4.9 gigawatts of power – more than the entire consumption of Denmark. That number has already tripled in the past six years, and is due to be catapulted ever higher in the coming years.

Inside ‘data centre alley’

We know as much because we have gained rare access into the heart of “data centre alley”, into two sites run by Digital Realty, one of the biggest datacentre companies in the world. It runs servers that power nearly all the major AI and cloud services in the world. If you send a request to one of those models or search engines there’s a good chance you’ve unknowingly used their machines yourself.

Inside a site run by Digital Realty
Image:
Inside a site run by Digital Realty

Their Digital Dulles site, under construction right now, is due to consume up to a gigawatt in power all told, with six substations to help provide that power. Indeed, it consumes about the same amount of power as a large nuclear power plant.

Walking through the site, a series of large warehouses, some already equipped with rows and rows of backup generators, there to ensure the silicon chips whirring away inside never lose power, is a striking experience – a reminder of the physical underpinnings of the AI age. For all that this technology feels weightless, it has enormous physical demands. It entails the construction of these massive concrete buildings, each of which needs enormous amounts of power and water to keep the servers cool.

Sky's Ed Conway at the data centre
Image:
Sky’s Ed Conway at the data centre

Read more from Ed Conway:
Blow to UK’s bid to become minerals superpower
There’s more to your AirPods than meets the eye

We were given access inside one of the company’s existing server centres – behind multiple security cordons into rooms only accessible with fingerprint identification. And there we saw the infrastructure necessary to keep those AI chips running. We saw an Nvidia DGX H100 running away, in a server rack capable of sucking in more power than a small village. We saw the cooling pipes running in and out of the building, as well as the ones which feed coolant into the GPUs (graphic processing units) themselves.

Such things underline that to the extent that AI has brainpower, it is provided not out of thin air, but via very physical amenities and infrastructure. And the availability of that infrastructure is one of the main limiting factors for this economic boom in the coming years.

According to economist Jason Furman, once you subtract AI and related technologies, the US economy barely grew at all in the first half of this year. So much is riding on this. But there are some who question whether the US is going to be able to construct power plants quickly enough to fuel this boom.

Please use Chrome browser for a more accessible video player

Is Trump’s AI plan a ‘tech bro’ manifesto?

For years, American power consumption remained more or less flat. That has changed rapidly in the past couple of years. Now, AI companies have made grand promises about future computing power, but that depends on being able to plug those chips into the grid.

Last week the International Monetary Fund’s chief economist, Pierre-Olivier Gourinchas, warned AI could indeed be a financial bubble.

He said: “There are echoes in the current tech investment surge of the dot-com boom of the late 1990s. It was the internet then… it is AI now. We’re seeing surging valuations, booming investment and strong consumption on the back of solid capital gains. The risk is that with stronger investment and consumption, a tighter monetary policy will be needed to contain price pressures. This is what happened in the late 1990s.”

‘The terrifying thing is…’

For those inside the AI world, this also feels like uncharted territory.

Helen Toner, executive director of Georgetown’s Center for Security and Emerging Technology, and formerly on the OpenAI board, said: “The terrifying thing is: no one knows how much further AI is going to go, and no one really knows how much economic growth is going to come out of it.

“The trends have certainly been that the AI systems we are developing get more and more sophisticated over time, and I don’t see signs of that stopping. I think they’ll keep getting more advanced. But the question of how much productivity growth will that create? How will that compare to the absolutely gobsmacking investments that are being made today?”

Whether it’s a new industrial revolution or a bubble – or both – there’s no denying AI is a massive economic story with massive implications.

For energy. For materials. For jobs. We just don’t know how massive yet.

Continue Reading

US

Nicholas Rossi: US man who fled to Scotland to avoid rape charges jailed

Published

on

By

Nicholas Rossi: US man who fled to Scotland to avoid rape charges jailed

Nicholas Rossi, an American man who faked his death and fled to Scotland to escape rape charges, has been jailed for at least five years.

The sentence handed down to the 38-year-old is the first of two he faces after being convicted separately in August and September of raping two women in 2008.

Utah has “indeterminate sentencing” – meaning jail terms handed down are in a range of years rather than a fixed number, with release dates set by the state’s parole board.

Nicholas Rossi appearing in court in August. Pic: AP
Image:
Nicholas Rossi appearing in court in August. Pic: AP

During August’s three-day trial, Rossi’s accuser and her parents took the stand – with the victim telling the court that he left a “trail of fear, pain, and destruction” behind him.

“This is not a plea for vengeance. This is a plea for safety and accountability, for recognition of the damage that will never fully heal,” she said.

Brandon Simmons, a prosecutor in the case, alleged Rossi “uses rape to control women” and posed a risk to community safety.

Rossi – whose legal name is Nicholas Alahverdian – maintained his innocence during the sentencing hearing. In a soft, raspy voice, he said: “I am not guilty of this. These women are lying.”

He was first identified in 2018 after a decade-old DNA rape kit was examined.

How Rossi was caught

But in February 2020 – months after he was charged in one of the cases – an online obituary claimed he had died of non-Hodgkin lymphoma.

Rossi was arrested in Scotland the following year while being treated for COVID, after hospital staff recognised his distinctive tattoos – including the crest of a university he never attended.

A protracted court battle meant he wasn’t extradited until January 2024, with Rossi claiming he was an Irish orphan named Arthur Knight who was being framed.

Investigators identified at least a dozen aliases that he had used to evade capture over the years.

Read more from Sky News:
Maccabi fans will not be able to buy tickets to Villa match
Pizza Hut to shut 68 restaurants in the UK

Please use Chrome browser for a more accessible video player

Jan 2024: Extradited man denies identity to US court

One of his victims had been recovering from a traumatic brain injury when she responded to a personal advert that Rossi had posted on Craigslist.

They began dating and were engaged within a couple of weeks – and according to her testimony, Rossi had asked her to pay for dates and car repairs, lend him money, and take on debt for their rings.

She told the court that Rossi raped her in his bedroom one night after she drove him home – and went to police years later after discovering that another woman in Utah had come forward with accusations.

Rossi is due to be sentenced for the second conviction in November.

Continue Reading

Trending