Mychal Kendricks during an Eagles practice in 2014.

DAVID MAIALETTI / File Photograph

Damilare Sonoiki addresses his Harvard classmates on Class Day in May 2013. Harvard University

Anatomy of a Mychal Kendricks Insider Trading Deal

Federal authorities charged Mychal Kendricks with securities fraud, saying the former Eagles linebacker made $1.2 million in illegal profits through insider trading tips. Prosecutors say the information was provided by Damilare Sonoiki, a former Goldman Sachs employee, who is accused of giving Kendricks information about the pending acquisitions of four companies before it became public. Here is a chronology of how the first insider-trading deal was completed, according to the U.S. Attorney’s Office.

July 2014: Sonoiki learns that Goldman Sachs was advising Compuware Corp., a computer-software manufacturer, about a proposed acquisition by private-equity firm Thoma Bravo.

 

July 14: Sonoki texts Kendricks about the pending deal, writing “hit my line soon as you can ... Got something for us”. Within hours after the exchange, Kendricks travels to New York to meet with Sonoiki outside Goldman Sachs’ Manhattan headquarters.

July 18: Kendricks pays $850 for a luxury-car service to drive Sonoiki from New York to York, Pa., to attend a nightclub event hosted by Kendricks. Afterward, the two go to Kendricks’ Philadelphia apartment.

 

July 19: While still at Kendricks’ apartment, Sonoiki opens an account in Kendricks’ name at an online brokerage firm. A half-hour later, Kendricks creates a note on his phone with Compuware's ticker symbol, CPWR.

 

July 26: Kendricks texts Sonoiki that he had placed $80,000 in the account Sonoiki set up: “Yo so the 80 is there.” Kendricks had pulled the money from a different investment account to his bank, and then to his new account, apparently to avoid questions from his financial adviser.

July 29: Goldman Sachs provides a timeline to Thoma Bravo with a tentative mid-August acquisition date. That evening, Kendricks and Sonoiki meet in New York, and then visit the set of a Teyana Taylor music video in which Kendricks makes a cameo appearance.

 

July 30: Sonoiki purchases 1,000 Compuware call accounts with September expiration dates from Kendricks' account for $22,000. The purchaser of a call contract typically believes that the value of the stock of the underlying company will rise. A call option with a short-term expiration date typically signifies that the buyer believes the stock's value will go up in the short term.

 

Aug. 1-5: Following numerous phone calls to Kendricks, Sonoiki purchases an additional 1,400 Compuware call options with September expiration dates for Kendricks at a cost of about $30,000.

 

Aug. 15: Sonoiki purchases for Kendricks 150 Compuware call options with November expiration dates for about $8,000.

Teyana Taylor at this month’s MTV Music Video Awards.

Associated Press

Aug. 23: Kendricks texts Sonoiki, expressing anxiety over the Compuware acquisition.

Kendricks: I’m getting scared Bruh

 

Sonoiki: bro, don’t get scared ...

Aug. 27: Kendricks shows more nervousness in another text exchange:

Kendricks: I’m getting kind of if-y Bruh ... Bruh idk

 

Sonoiki: I hear u. it’s still happening, just taking longer than it was supposed to ...

Aug. 28: Kendricks texts Sonoiki about money concerns:

Kendricks: I’m at a messed up place as far as my money is concerned I have enough money to live and to support myself but not enough money to avoid taxes ... I don’t have enough money to buy a business and get the tax breaks I need

 

Sonoiki: Haha ... I should have some good news for you real soon

According to Spotrac.com, Kendricks made $1,212,121 during the 2014 NFL season as a player for the Eagles.

 

Sept. 1: The Wall Street Journal reports that an announcement on Compuware’s pending acquisition is imminent.

Compuware

Transactions

Sept. 2: Compuware’s stock price rises sharply and closes at $10.59 a share, a 13 percent increase from the previous trading day. Sonoiki sells all the Compuware call options he purchased for Kendricks for about $138,000. The options were bought for about $60,000, netting Kendricks a profit of about $78,000.

 

Sept. 3: Kendricks texts Sonoiki: “[y]ou the man”

 

Sept. 4: Sonoiki texts Kendricks, asking him to “hook [him] up” with Eagles tickets, which he receives that day. On the same day, Sonoiki sends Kendricks a series of text messages using coded language to reference the kickbacks Kendricks had agreed to pay: “idk when next imma be able to see you ... so try to have the bread if you can ... the bread in nyc just isn't the same and i really like my cheesesteaks with the stuff you all have in Philly.”

$138,000

$78,000

$60,000

Purchase

price for

call

options

Sale

price

for

options

Kendricks’

profit

Mychal Kendricks during an Eagles practice in 2014.

DAVID MAIALETTI / File Photograph

Anatomy of a Mychal Kendricks Insider Trading Deal

Federal authorities charged Mychal Kendricks with securities fraud, saying the former Eagles linebacker made $1.2 million in illegal profits through insider trading tips. Prosecutors say the information was provided by Damilare Sonoiki, a former Goldman Sachs employee, who is accused of giving Kendricks information about the pending acquisitions of four companies before it became public. Here is a chronology of how the first insider-trading deal was completed, according to the U.S. Attorney’s Office.

July 2014: Sonoiki learns that Goldman Sachs was advising Compuware Corp., a computer-software manufacturer, about a proposed acquisition by private-equity firm Thoma Bravo.

 

July 14: Sonoki texts Kendricks about the pending deal, writing “hit my line soon as you can ... Got something for us”. Within hours after the exchange, Kendricks travels to New York to meet with Sonoiki outside Goldman Sachs’ Manhattan headquarters.

 

July 18: Kendricks pays $850 for a luxury-car service to drive Sonoiki from New York to York, Pa., to attend a nightclub event hosted by Kendricks. Afterward, the two go to Kendricks’ Philadelphia apartment.

 

July 19: While still at Kendricks’ apartment, Sonoiki opens an account in Kendricks’ name at an online brokerage firm. A half-hour later, Kendricks creates a note on his phone with Compuware's ticker symbol, CPWR.

 

July 26: Kendricks texts Sonoiki that he had placed $80,000 in the account Sonoiki set up: “Yo so the 80 is there.” Kendricks had pulled the money from a different investment account to his bank, and then to his new account, apparently to avoid questions from his financial adviser.

July 29: Goldman Sachs provides a timeline to Thoma Bravo with a tentative mid-August acquisition date. That evening, Kendricks and Sonoiki meet in New York, and then visit the set of a Teyana Taylor music video in which Kendricks makes a cameo appearance.

Teyana Taylor at this month’s MTV Music Video Awards.

Associated Press

July 30: Sonoiki purchases 1,000 Compuware call accounts with September expiration dates from Kendricks' account for $22,000. The purchaser of a call contract typically believes that the value of the stock of the underlying company will rise. A call option with a short-term expiration date typically signifies that the buyer believes the stock's value will go up in the short term.

 

Aug. 1-5: Following numerous phone calls to Kendricks, Sonoiki purchases an additional 1,400 Compuware call options with September expiration dates for Kendricks at a cost of about $30,000.

 

Aug. 15: Sonoiki purchases for Kendricks 150 Compuware call options with November expiration dates for about $8,000.

Damilare Sonoiki addresses his Harvard classmates on Class Day in May 2013. Harvard University

Aug. 23: Kendricks texts Sonoiki, expressing anxiety over the Compuware acquisition.

Kendricks: I’m getting scared Bruh

 

Sonoiki: bro, don’t get scared ...

Aug. 27: Kendricks shows more nervousness in another text exchange:

Kendricks: I’m getting kind of if-y Bruh ... Bruh idk

 

Sonoiki: I hear u. it’s still happening, just taking longer than it was supposed to ...

Aug. 28: Kendricks texts Sonoiki about money concerns:

Kendricks: I’m at a messed up place as far as my money is concerned I have enough money to live and to support myself but not enough money to avoid taxes ... I don’t have enough money to buy a business and get the tax breaks I need

 

Sonoiki: Haha ... I should have some good news for you real soon

According to Spotrac.com, Kendricks made $1,212,121 during the 2014 NFL season as a player for the Eagles.

 

Sept. 1: The Wall Street Journal reports that an announcement on Compuware’s pending acquisition is imminent.

Sept. 2: Compuware’s stock price rises sharply and closes at $10.59 a share, a 13 percent increase from the previous trading day. Sonoiki sells all the Compuware call options he purchased for Kendricks for about $138,000. The options were bought for about $60,000, netting Kendricks a profit of about $78,000.

 

Sept. 3: Kendricks texts Sonoiki: “[y]ou the man”

 

Compuware Transactions

$138,000

$78,000

$60,000

Purchase

price for

call

options

Sale

price

for

options

Kendricks’

profit

Sept. 4: Sonoiki texts Kendricks, asking him to “hook [him] up” with Eagles tickets, which he receives that day. On the same day, Sonoiki sends Kendricks a series of text messages using coded language to reference the kickbacks Kendricks had agreed to pay: “idk when next imma be able to see you ... so try to have the bread if you can ... the bread in nyc just isn't the same and i really like my cheesesteaks with the stuff you all have in Philly.”