Cleveland Browns linebacker Mychal Kendricks and former Goldman Sachs Group Inc.
GS, -0.07%
banking analyst Damilare Sonoiki were charged Wednesday with insider trading in an alleged scheme that prosecutors say yielded about $1.2 million in profits for Kendricks.
The two men, both 27, were charged with one count of securities fraud and one count of conspiracy to commit securities fraud. Their attorneys said both men are expected to plead guilty.
Prosecutors said each defendant, if convicted, could face a maximum prison sentence of 25 years and large fines. They may also be ordered to forfeit all proceeds from the alleged crimes. The Securities and Exchange Commission on Wednesday sued them both for securities fraud.
Prosecutors allege Sonoiki gave Kendricks, who also wrote for the television show “Black-ish” in 2015 and 2016, inside information ahead of four corporate acquisitions in 2014, when Kendricks played for the Philadelphia Eagles. In each case, prosecutors say, Kendricks purchased call options and saw the value of those options jump after the merger was announced. In return for the tips, prosecutors allege, Kendricks rewarded Sonoiki with about $10,000 in cash and perks such as Eagles tickets and an invitation to pop star Teyana Taylor’s music video set. Authorities say Kendricks and Sonoiki tried to hide their crimes by talking over FaceTime and using code words in text messages.
An expanded version of this report appears on WSJ.com,
Also popular on WSJ.com:
Tired of swiping right, some singles try slow dating.
Yahoo, bucking industry, scans email for data to sell to advertisers.
Source : MTV
