Three former minor league baseball players have avoided prison time after being sentenced to time served for their roles in an insider trading scheme involving Del Taco stock. Jordan Joseph Qsar, 30, Austin Lane Bernard, 31, and Grant Lee Witherspoon, 29, pleaded guilty to conspiracy to commit securities and wire fraud.
The Scheme Unfolds
The scheme began in October 2021 when Qsar, who previously played baseball at Pepperdine University, received a tip from a former teammate working in Jack in the Box’s strategic finance department. The teammate revealed that Jack in the Box was preparing to acquire Del Taco. Instead of keeping the information confidential, Qsar shared the tip with Bernard and Witherspoon.
The three players subsequently purchased Del Taco stock. When Jack in the Box publicly announced its $575 million acquisition of Del Taco in December 2021, the taco chain's shares surged by 66%. This allowed the former players to sell their stock for a profit. Qsar illegally gained approximately $56,000, Bernard made about $64,600, and Witherspoon profited around $42,000.
Tip Spreads to Others
Bernard and Witherspoon further disseminated the insider information to others. This network of individuals collectively profited an estimated $325,000 through illegal trades. Federal prosecutors highlighted the scheme as a product of "greed and recklessness."
US District Judge Dana Sabraw acknowledged the seriousness of insider trading but ultimately recommended no prison sentences. Prosecutors argued that the felony convictions themselves, combined with the defendants having spent more than two years on pretrial release without incident, constituted sufficient punishment. Judge Sabraw noted that the incident "arose out of friendship, not a scheme," and called the defendants' subsequent actions "remarkable."
Aftermath and Sentencing
Federal prosecutors announced the case in March 2024, with the Securities and Exchange Commission filing parallel civil charges. Qsar and Witherspoon have settled with the SEC by repaying their illegal profits along with interest. Bernard stated to the court that he has not yet repaid the money due to financial struggles while seeking employment.
In statements to the court, Qsar expressed shame and constant reflection on his actions, stating, "There is no version of this where I was not wrong." Witherspoon, who now works in sales and is pursuing a degree in chemical engineering, noted that the conviction has negatively impacted his job prospects. Bernard apologized for taking an unfair advantage and vowed to become someone his family can be proud of again.