ex-roommate and co-scheme of former Eagles linebacker convicted of trading on inside information provided to them | USAO-EDPA
PHILADELPHIA – Acting United States lawyer Jennifer Arbittier Williams has announced that Mark Ramsey, 31, of San Francisco, Calif., Was convicted today in an insider trading trial resulting from his using non-public information provided to him and former Philadelphia Eagles linebacker Marvin Mychal. Kendricks by a Goldman Sachs investment banker regarding four separate stocks.
Evidence presented at trial showed the accused traded inside information provided by Damilare Sonoiki, then a junior analyst at Goldman Sachs, who offered Kendricks information regarding upcoming mergers involving four Goldman Sachs clients. Ramsey and Kendricks purchased call options in the target companies between July 2014 and November 2014. When the proposed merger was announced in each case, the value of the options purchased by Ramsey and Kendricks increased significantly. During the period of the plot, transactions carried out by Ramsey and Kendricks from Kendricks’ account generated almost $ 1.2 million in profits on the four titles listed in the previous indictment:
- The trade began when Sonoiki and Kendricks purchased call options for Compuware based on the pending acquisition of Compuware that was known to Sonoiki. When Compuware announced on September 2, 2014 that it had been acquired by a private company, Kendricks made $ 78,423 in profit.
- Sonoiki provided Kendricks and Ramsey with inside information about a second transaction in which Goldman represented News Corporation, which was in talks to acquire Move, Inc. Ramsey and Kendricks bought call options on Move during the month of September. When News Corporation’s acquisition of Move was announced on September 30, 2014, Ramsey and Kendricks sold the open options contracts for $ 278,701.
- In early October 2014, Sonoiki provided Kendricks and Ramsey with inside information about a pending acquisition of Sapient, another company represented by Goldman. Sapient was in talks with Publicis Corporation regarding a merger agreement. Ramsey began trading on Sapient on October 6, 2014. On November 3, the merger was announced and Ramsey and Kendricks made a profit of $ 489,079.
- In October 2014, Oplink was in talks with Molex, a subsidiary of Koch Industries, regarding a merger agreement. Goldman represented Molex and Koch Industries. Ramsey bought call options on Kendricks’ account between October 31 and November 17, 2014. Ramsey’s trading has occupied such a large part of the open call market that there has been an article from Reuters on November 19, 2014, suggesting someone must have inside information. The deal was announced on November 19, 2014, when Ramsey and Kendricks made a profit of $ 351,872.
Defendants Sonoiki and Kendricks had previously pleaded guilty to insider trading and conspiracy charges based on these same events.
“Insider trading undermines confidence in our financial markets and hurts ordinary investors who play by the rules,” Interim US Attorney Williams said. “Mark Ramsey put himself above the law by cheating in the marketplace and deceiving other investors, and for this crime a jury found him guilty. Our Office will continue to work with our law enforcement partners to maintain the integrity of capital markets.
“Mark Ramsey received important, non-public information which he used to secure an exceptional investment. Exploiting such knowledge is illegal and today a jury held it responsible, ”said Bradley S. Benavides, acting special agent in charge of the Philadelphia Division of the FBI. “Insider trading undermines the confidence necessary for the proper functioning of our financial markets. The FBI is working hard to derail the dishonest profiteers who cheat the system in this way. “
The case has been investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission, and is being pursued by Assistant U.S. Attorneys David Ignall and Eileen Zelek.