Former Minor League Players Get Time Served for Del Taco Insider Trading

Three ex-minor-league baseball players were sentenced to time served after pleading guilty to a securities and wire-fraud scheme that let them profit from a secret tip about Jack in the Box’s purchase of Del Taco.

In October 2021, former minor-league player Jordan Joseph Qsar received a confidential tip from a ex-teammate working in Jack in the Box’s strategic finance group that the company intended to buy Del Taco. Qsar shared the information with fellow ex-players Austin Lane Bernard and Grant Lee Witherscow, and the three purchased Del Taco shares before the $575 million acquisition was disclosed in December. When the deal went public, the stock surged 66%, allowing Qsar, Bernard and Witherscow to cash out gains of about $56,000, $64,600 and $42,000 respectively, while the tip also reached 19 other investors who earned roughly $325,000.

The men pleaded guilty to conspiracy to commit securities and wire fraud; prosecutors argued that the felony convictions and two-year pre-trial release were sufficient punishment, and Judge Dana Sabraw sentenced them to time served, calling the incident “a product of friendship.” Both Qsar and Witherscow have repaid their illicit profits with interest to the SEC, and Witherscow said the conviction has hampered his job prospects.