Three former professional baseball players admitted in San Diego federal court that their big score came off the field, not on it. Yesterday, Jordan Qsar, Grant Witherspoon and Austin Bernard pleaded guilty to a conspiracy to commit insider trading tied to Del Taco stock, acknowledging that they traded on nonpublic tips about Jack in the Box’s acquisition of the fast-food chain. Prosecutors say the trades generated roughly $190,000 in illegal gains. Sentencing is set for July 31.
According to CBS 8, the guilty pleas were entered yesterday in San Diego federal court in a case that was first indicted in March 2024. The station reports that all three men pleaded guilty to a single count of conspiracy to commit insider trading and that a judge scheduled sentencing for July 31. The outlet cites federal court filings and local proceedings in its coverage.
How prosecutors say the scheme worked
An indictment unsealed March 26, 2024, by the U.S. Attorney’s Office for the Southern District of California alleges that Qsar received confidential information from a friend who worked on Jack in the Box’s Del Taco acquisition project, then passed those tips to Bernard and Witherspoon. Prosecutors say the trio bought call options and shares in advance of the public announcement on December 6, 2021. When the deal went public, Del Taco stock jumped from $7.53 to $12.51, roughly a 66 percent spike, and the indictment states that the defendants later sold their positions for about $189,000 in illicit profits. “The system has to be fair for everyone, or the market fails,” U.S. Attorney Tara McGrath said when the indictment was announced.
SEC civil action and penalties
The U.S. Securities and Exchange Commission filed a parallel civil enforcement case and, in November 2024, obtained final judgments requiring the three to give up their trading profits and pay additional civil penalties, the agency reports. According to the SEC’s litigation release, Qsar was ordered to disgorge about $56,470 and pay a civil penalty of $63,194. Bernard was ordered to disgorge about $64,693 and pay an $86,877 penalty. Witherspoon was ordered to give up roughly $42,768 and pay a $48,143 penalty. The SEC said its Market Abuse Unit used data analysis to flag suspicious trading activity and credited the U.S. Attorney’s Office, the FBI and FINRA for their help in the investigation (U.S. Securities and Exchange Commission).
What’s next in court
With the guilty pleas now on the record, the case moves into the sentencing phase. All three defendants are scheduled to return to court on July 31, where they face potential prison time and fines under federal law. The original Justice Department release outlining the indictment noted that the conspiracy charge carries a statutory maximum of up to five years in prison, while related securities fraud and wire fraud counts can carry up to 20 years, though actual sentences typically follow federal guidelines and account for any cooperation. Federal prosecutors said the investigation, handled with assistance from the FBI, remains a priority for the U.S. Attorney’s Office in San Diego.
For San Diego, the case is another reminder that market-abuse crackdowns do not just live on Wall Street trading floors. Investigators and regulators leaned on trading data and standard criminal investigative tools to track a scheme that prosecutors say started in social and team circles. Local readers can expect the case to resurface when the court hands down sentences this summer.
