CALL TOLL FREE
800-760-0912

SEC Brings Insider Trading Charges Against Pro Football Player and Investment Banker

The Securities and Exchange Commission (SEC) brought insider trading charges last week against a NFL player and a former investment banker for trading on material, non-public information in advance of company acquisitions.  The pair allegedly utilized encrypted text communications and FaceTime discussions to engage in the claimed illegal insider trading.

In its civil enforcement action, the SEC alleges that after meeting at a social event, Damilare Sonoiki, an investment bank analyst who had access to confidential data regarding future corporate mergers, began tipping Mychal Kendricks, an NFL player.  Based upon this material, non-public inside information, Kendricks allegedly reaped $1.2 million in illicit trading profits by purchasing securities in soon-to-be acquired companies and then liquidating his positions after the deals were made public.  In one egregious example of his alleged insider trading, the SEC identified a securities transaction that produced an approximate 400% return in just two weeks.

Per the SEC, Kendricks compensated Sonoiki for his tips of inside information with, among other benefits, cash payments and free football tickets.

In its complaint filed in federal court in Philadelphia, the SEC charged the two with violations of the anti-fraud provisions of the federal securities laws, and is seeking the return of trading profits, prejudgment interest, civil monetary penalties and injunctive relief.   To make matters worse, the US Attorney’s Office has joined the fray, filing criminal charges against the duo in a parallel action.

In retrospect, seems as though those “free” NFL tickets were just not worth the price.

SEC defense lawyer David Chase is the principal of his SEC defense law firm, David R. Chase, P.A., located in Fort Lauderdale, Florida.  Mr. Chase, an SEC defense lawyer and former SEC enforcement attorney, defends individuals in SEC and FINRA investigations and enforcement actions throughout the country.

If you are under SEC investigation and need an insider trading defense lawyer call SEC defense lawyer David Chase for a confidential, no-cost initial consultation at: (800) 760-0912, or you may contact Mr. Chase at: david@davidchaselaw.com.