FILE PHOTO: A worker cleans a Kodak booth at the Las Vegas Convention Center in preparation for 2019 CES in Las VegasNEW YORK - A former pharmaceutical executive and his cousin pleaded guilty on Wednesday to insider trading in Eastman Kodak, based on tips that the company was arranging a surprise $765 million loan from the Trump administration to make drug ingredients.
Both defendants were accused of buying Kodak shares in anticipation of the U.S. International Development Finance Corp loan to the former photography giant, and selling them after the loan was announced on July 28, 2020.Prosecutors said this led to more than $500,000 of illegal profit for Andrew Stiles and more than $700,000 for Gray Stiles.
Shares of Rochester, New York-based Kodak soared to $60 from $2.62 within two days of the loan's announcement, as the company sought to remake itself.