Litigation Release No. 26017 / June 6, 2024

Securities and Exchange Commission v. Jordan Qsar, Grant Witherspoon, Austin Bernard, and Chase Lambert, No. 3:24-cv-00570 (S.D. Cal. filed Mar. 26, 2024)

SEC Obtains Final Judgment Against Chase Lambert in Connection with Insider Trading

On May 10, 2024, the Securities and Exchange Commission obtained a final judgment against Chase Lambert, a former minor league baseball player, whom the SEC charged with insider trading in advance of the December 6, 2021 announcement that Jack in the Box Inc. would acquire Del Taco Restaurants, Inc.

The complaint alleges that co-Defendant Jordan Qsar learned about the acquisition from a friend and former teammate who was working on the acquisition at Jack in the Box. Qsar tipped Lambert and others who then used the information to purchase Del Taco call options. The complaint further alleged that Lambert made about $25,100.00 in illegal trading profits and tipped his cousin who also bought Del Taco call options.

The case originated from the SEC’s Market Abuse Unit’s Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.

Lambert consented to a final judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Lambert was ordered to pay disgorgement in the amount of $25,080.00, representing his net profits gained from the conduct alleged in the Complaint, together with prejudgment interest in the amount of $3,473.96. Lambert was also ordered to pay a civil penalty in the amount of $29,775.00.

The SEC’s litigation was led by Charles Canter and supervised by Douglas M. Miller of the Los Angeles Regional Office. The SEC’s investigation was conducted by Sara Kalin of the Market Abuse Unit, with assistance from John Rymas of the Market Abuse Unit’s Analysis and Detection Center, and supervised by Assistant Regional Director Diana Tani and Market Abuse Unit Chief Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority (FINRA).