Third Individual Charged in Insider Trading Case Linked to Former NFL Player and Investment Bank Analyst
PHILADELPHIA – United States Attorney William M. McSwain announced that an indictment was unsealed today against Mark Wayne Ramsey, 29, of San Francisco, California, charging him with conspiracy to commit securities fraud and four counts of securities fraud.
According to the indictment, Ramsey conspired with Damilare Sonoiki and Marvin Mychal Kendricks, both of whom have already pleaded guilty to similar charges. The indictment alleges that Sonoiki (then an analyst at a global investment bank in New York) provided material, non-public information to Kendricks (then a linebacker for the Philadelphia Eagles) and to Ramsey, who was Kendricks’ roommate. The information that Sonoiki provided was about upcoming mergers involving four investment bank clients. Sonoiki obtained this information in violation of his duty of confidentiality that he owed to the investment bank.
The indictment alleges that Kendricks gave Ramsey access to his brokerage account. Relying on the material, non-public information they received from Sonoiki, Kendricks and Ramsey purchased call options between July 2014 and November 2014 in the target companies: Compuware Corporation, Move, Inc., Sapient Corporation, and Oplink Communications LLC. When the proposed merger was announced in each case, the value of the options went up significantly. During the period of the conspiracy, Kendricks made a profit of nearly $1.2 million. The indictment alleges that Kendricks provided, among other things, $15,000 to Ramsey for his participation in the scheme.
“When individuals engage in insider trading – buying and selling securities based on material, non-public information – it undermines faith in our financial markets and harms ordinary investors who play by the rules,” said U.S. Attorney McSwain. “As alleged, Mr. Ramsey cheated the market, cheated other investors, and placed himself above the law. My Office will continue to work with our law enforcement partners to maintain the integrity of the financial markets, which is one of our top priorities.”
“Those engaged in insider trading fundamentally undermine the trust necessary for our nation's financial markets to function,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI is committed to ensuring that those markets are a level playing field, not just profiting those with friends in the know.”
If convicted, Ramsey faces a maximum possible sentence of 85 years’ imprisonment, a three year period of supervised release, a $20,250,000 fine, and a $500 special assessment. Forfeiture of all proceeds from the offenses also may be ordered.
The case was investigated by Federal Bureau of Investigation and the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.