The SEC and the DOJ charged a professional football player and a former analyst at an investment bank with fraud and insider trading.
According to the SEC Complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Marvin Mychal Kendricks allegedly received material nonpublic information from a former investment banking analyst about at least four potential corporate acquisitions. Mr. Kendricks allegedly purchased options in the companies prior to the public announcements that these companies were entering into agreements to be acquired by other companies. The trades made by, or on behalf of, Mr. Kendrick resulted in approximately $1.2 million in illegal profits. The SEC claimed that Mr. Kendricks compensated the investment banking analyst by paying him in cash and providing him with certain perks, including free tickets to Philadelphia Eagles football games.
The SEC is seeking the disgorgement of all ill-gotten gains, plus interest and other penalties.
In a parallel action, the DOJ charged Mr. Kendricks and the former investment banking with securities fraud.
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