SEC v. Mychal Kendricks; and Hamed A. Ettu, No. LR-24776, Eastern District of Pennsylvania (Mar. 23, 2020) — Press Release
raw: Kendricks, et al., Hamed A. Ettu
Kendricks, et al., Hamed A. Ettu, No. 2:18-cv-03695 (Mar. 23, 2020)
summary
Mychal Kendricks and Hamed A. Ettu were found guilty of insider trading, with Kendricks ordered to pay $1,188,075 and Ettu $73,244 in disgorgement, and both permanently enjoined from violating securities laws.
paragraph
Mychal Kendricks, a professional football player, and Hamed A. Ettu, a family friend of an investment bank analyst, were accused of insider trading. Kendricks allegedly received tips from Damilare Sonoiki about upcoming corporate mergers and traded on the information for a profit of approximately $1.2 million, while Ettu traded on similar information for a profit of around $93,000. Both defendants were charged with violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934.
narrative
The Securities and Exchange Commission (SEC) obtained final judgments against Mychal Kendricks, a professional football player, and Hamed A. Ettu, a family friend of an investment bank analyst, for insider trading based on nonpublic information leaked by Damilare Sonoiki. Kendricks traded on tips about corporate mergers, earning approximately $1.2 million in illicit profits, while Ettu made about $93,000 from tips on two acquisitions. Both were permanently enjoined from violating securities anti-fraud laws, with Kendricks ordered to disgorge $1,188,075 and Ettu $73,244—amounts satisfied by parallel criminal forfeiture orders. Kendricks pleaded guilty to securities fraud and conspiracy but awaits sentencing, while Ettu pleaded guilty to conspiracy and received three years’ probation with nine months of home detention. The SEC’s Philadelphia Regional Office led the investigation, coordinated with the U.S. Attorney’s Office. The case was led by Christopher R. Kelly and supervised by Jennifer Chun Barry in the SEC's Philadelphia Regional Office.
Classified insider-trading(confidence 100%). EDGAR detection: forms 4/3/5/144· recall 81% / precision 19%. detection rule →
Statutes
Sections 10(b) and 14(e) of the Securities Exchange ActSections 10(b) and 14(e) of the Securities Exchange Act
Parties
SECURITIES AND EXCHANGE COMMISSIONMARVIN MYCHAL-CHRISTOPHER KENDRICKSDAMILARE SONOIKI
Keywords
kendricksettuhamed ettusecuritiesfinal judgmentssecurities exchangesecurities fraudphiladelphia regionalagainsthamedsonoikikendricks hamedjudgments againstinsider tradingexchange commission
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 5
- $1.20M $1.2 million $1M–$10M
- $1.19M $1,188,075 $1M–$10M
- $93K $93,000 $10K–$100K
- $73K $73,244 $10K–$100K
- $20K $20,000 $10K–$100K
Entities 6
- person final judgments
- scheme_term insider trading
- person mychal kendricks
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- court united states district court for the eastern district of pennsylvania
Triples 20
- Securities and Exchange Commission obtains final judgments against professional football player Mychal Kendricks and tipper Hamed A. Ettu for insider trading
- Securities and Exchange Commission obtains final judgments against professional football player Mychal Kendricks and tipper Hamed A. Ettu for insider trading
- SEC obtains final judgments
- SEC charges Nfl Player
- SEC charges Second Tippee
- Nfl Player charged with insider trading
- Second Tippee charged with insider trading
- United States District Court for the Eastern District of Pennsylvania entered final judgments
- Mychal Kendricks is professional football player
- Securities and Exchange Commission v. Kendricks
- Securities and Exchange Commission v. Hamed A. Ettu
- Securities and Exchange Commission obtains final judgments against professional football player Mychal Kendricks and tipper Hamed A. Ettu for insider trading
- Mychal Kendricks entered final judgments on consent
- Securities and Exchange Commission obtains final judgments
- Mychal Kendricks charged with insider trading
- Hamed A. Ettu charged with insider trading
- United States District Court entered final judgments
- Securities and Exchange Commission filed Civil Action No. 2:18-cv-03695
- Securities and Exchange Commission filed Civil Action No. 2:18-cv-04739
- Mychal Kendricks is professional football player
PDF (from attached: complaint)
Text layers
Extracted body text (2,556c)
SEC Obtains Final Judgments Against Nfl Player and Second Tippee Charged with Insider Trading Litigation Release No. 24776 / March 23, 2020 Securities and Exchange Commission v. Kendricks, et al., Civil Action No. 2:18-cv-03695 (E.D. Pa., filed August 29, 2018) Securities and Exchange Commission v. Hamed A. Ettu, Civil Action No. 2:18-cv-04739 (E.D. Pa., filed November 2, 2018) On March 18, 2020, the United States District Court for the Eastern District of Pennsylvania entered final judgments on consent against professional football player Mychal Kendricks and the tipper's family friend Hamed A. Ettu for insider trading. The SEC's complaint, filed on August 29, 2018, alleged that Kendricks received illegal tips from co-defendant Damilare Sonoiki, an analyst at an investment bank, about several upcoming corporate mergers. Kendricks traded on this information for a profit of approximately $1.2 million. On November 2, 2018, the SEC filed a related complaint against Ettu, a family friend of Sonoiki, alleging that he also traded based on information that he received from Sonoiki concerning two upcoming corporate acquisitions for a profit of approximately $93,000. The final judgments against Kendricks and Ettu permanently enjoin them from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and order Kendricks to pay disgorgement of $1,188,075 and order Ettu to pay disgorgement of $73,244, which accounts for a $20,000 debt Sonoiki owed to Ettu. The monetary relief was deemed satisfied by forfeiture orders entered against Kendricks and Ettu in a parallel criminal action brought by the U.S. Attorney's Office for the Eastern District of Pennsylvania. Kendricks previously pleaded guilty to securities fraud and conspiracy to commit securities fraud, and has not yet been sentenced. Ettu pleaded guilty to conspiracy to commit securities fraud, was sentenced to probation for a term of 3 years, including 9 months of home detention. The litigation was led by Christopher R. Kelly and supervised by Jennifer Chun Barry in the SEC's Philadelphia Regional Office. The SEC's investigation which led to these actions was conducted by Rachael Clarke and Patrick McCluskey of the Market Abuse Unit in the Philadelphia Regional Office, with the assistance of John Rymas of the Unit's Analysis and Detection Center. The case has been supervised by Joseph G. Sansone, Chief of the Market Abuse Unit, and Kelly L. Gibson, Regional Director of the Philadelphia Regional Office. SEC Complaint
OCR text (2,556c · html-text · 99% conf)
SEC Obtains Final Judgments Against Nfl Player and Second Tippee Charged with Insider Trading Litigation Release No. 24776 / March 23, 2020 Securities and Exchange Commission v. Kendricks, et al., Civil Action No. 2:18-cv-03695 (E.D. Pa., filed August 29, 2018) Securities and Exchange Commission v. Hamed A. Ettu, Civil Action No. 2:18-cv-04739 (E.D. Pa., filed November 2, 2018) On March 18, 2020, the United States District Court for the Eastern District of Pennsylvania entered final judgments on consent against professional football player Mychal Kendricks and the tipper's family friend Hamed A. Ettu for insider trading. The SEC's complaint, filed on August 29, 2018, alleged that Kendricks received illegal tips from co-defendant Damilare Sonoiki, an analyst at an investment bank, about several upcoming corporate mergers. Kendricks traded on this information for a profit of approximately $1.2 million. On November 2, 2018, the SEC filed a related complaint against Ettu, a family friend of Sonoiki, alleging that he also traded based on information that he received from Sonoiki concerning two upcoming corporate acquisitions for a profit of approximately $93,000. The final judgments against Kendricks and Ettu permanently enjoin them from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and order Kendricks to pay disgorgement of $1,188,075 and order Ettu to pay disgorgement of $73,244, which accounts for a $20,000 debt Sonoiki owed to Ettu. The monetary relief was deemed satisfied by forfeiture orders entered against Kendricks and Ettu in a parallel criminal action brought by the U.S. Attorney's Office for the Eastern District of Pennsylvania. Kendricks previously pleaded guilty to securities fraud and conspiracy to commit securities fraud, and has not yet been sentenced. Ettu pleaded guilty to conspiracy to commit securities fraud, was sentenced to probation for a term of 3 years, including 9 months of home detention. The litigation was led by Christopher R. Kelly and supervised by Jennifer Chun Barry in the SEC's Philadelphia Regional Office. The SEC's investigation which led to these actions was conducted by Rachael Clarke and Patrick McCluskey of the Market Abuse Unit in the Philadelphia Regional Office, with the assistance of John Rymas of the Unit's Analysis and Detection Center. The case has been supervised by Joseph G. Sansone, Chief of the Market Abuse Unit, and Kelly L. Gibson, Regional Director of the Philadelphia Regional Office. SEC Complaint