When it comes to money, stocks and insider trading people make strange bedfellows. Cleveland Browns Mychal Kendricks’ $1.2 million insider trading scheme was noteworthy for its brazenness, but also for the people involved. Kendricks has made millions playing in the NFL, so why would he risk it all to trade on insider information? Damilare Sonoiki, who who supplied Kendricks with the insider information on pending M&A transactions, was a Goldman Sachs analyst at the time.
The trades involved Compuware Corp., Move Inc., Sapient Corp. and Oplink Communications. There are still more questions than answers. In what world could Sonoiki and Kendricks meet, and what did Sonoiki have to gain by providing the names of companies about the merge, the securities to acquire and the amounts? Once details emerge over what Sonoiki got in return for providing Kendricks with $1.2 million in free profits the public could be stunned. Let’s put it this way, a well-known pop star, who happens to be married to an NBA basketball player, could be involved.