Ex-Goldman Sachs Associate Pleads Guilty To Insider Trading With Mychal Kendricks
Former Goldman Sachs associate Damilare Sonoiki has pled guilty to the two counts against him made in connection with the alleged insider trading involving both Sonoiki and NFL linebacker Mychal Kendricks. The guilty plea was entered in court, in the Eastern District of Pennsylvania, on September 19.
Sonoiki’s guilty plea follows Kendricks’ own guilty plea on September 6. Kendricks had previously admitted publicly that he was involved in the conspiracy.
The two counts against Sonoiki and Kendricks were laid out in an Information filed on August 29. Count I is based on conspiracy to commit securities fraud, while Count II is for aiding and abetting.
In Count I, the United States alleged that Sonoiki provided Kendricks with information regarding Goldman Sachs clients, including non-public information, about pending merger and acquisition deals. The Information states that Kendricks relied on what he heard from Sonoiki to buy call option contracts in companies prior to public merger announcements, selling them for profits thereafter.
Kendricks allegedly provided Sonoiki with cash and tickets to Philadelphia Eagles games in exchange for the valuable information sent by Sonoiki. The NFL linebacker is believed to have gained roughly $1.2 million from the aforesaid activities.
Count II essentially uses the facts laid out in Count I to assert a legal theory that both Sonoiki and Kendricks violated a federal statute that prohibits aiding and abetting — 18 U.S.C. § 2.
Sonoiki’s sentencing is scheduled for January 11, 2019. His bail has been set at $100,000. Meanwhile, Kendricks is suiting up for the Seattle Seahawks, which signed him after the Cleveland Browns cut him following the public disclosure of a case against Kendricks and Sonoiki for insider trading.