Financial Crime Weekly: Former Celsius VP Pleads Guilty To Insider Trading, Lockheed Martin Pays Nearly $30 Million Settlement

by Erica Kollmann Benzinga Staff Writer

Zinger Key Points

Former Celsius Holdings vice president and controller pleads guilty to securities fraud related to insider trading.
Lockheed Martin pays nearly $30 million to resolve allegations of defective pricing on defense contracts.
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Stephen George, former vice president and controller of Celsius Holdings, Inc. CELH, on Tuesday pleaded guilty for his role in an insider trading scheme that netted him over $1.6 million in profits.

According to court documents, George was a member of the Finance Department at Celsius Holdings from November 2017 until April 7, 2023 and held roles including vice president and controller. Upon leaving the company, George allegedly emailed himself internal data about the company's first-quarter financial performance and over the following month bought 20,000 shares of Celsius and 300 call options on the stock.

After Celsius reported record quarterly revenue, George sold his shares and call options contracts in May 2023, netting $1.68 million.

George pleaded guilty to one count of securities fraud and faces a maximum penalty of 20 years in prison in sentencing scheduled on April 28.

Lockheed Martin Pays Nearly $30 To Settle Defective Pricing Allegations

The U.S. Department of Justice announced on Thursday that Lockheed Martin Corp. LMT agreed to pay $29.74 million to resolve False Claims Act allegations of defective pricing on contracts for F-35 military aircraft.

This payment is in addition to $11.3 million that LMC previously paid to the Department of Defense for the same undisclosed cost and pricing data on some of the same contracts.

According to court documents, between 2013 and 2015, Lockheed Martin inflated pricing proposals it submitted to obtain contracts for the F-35 by failing to provide to DOD's F-35 Joint Program Office accurate, complete and current cost and pricing data during the negotiations leading to the award of five contracts for the production or sustainment of the F-35.

"Those who do business with the government must do so fairly and honestly," said Acting Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. "We will pursue contractors that knowingly misuse taxpayer funds."

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