Corporate Insider And Two Associates Plead Guilty To Million-Dollar Insider Trading Scheme

Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JONATHAN WHITESIDES, DANIEL MCCORMICK, and BRENT CRANMER pled guilty to committing securities fraud in connection with a scheme to trade in securities of Kaman, Corporation (“Kaman”) using inside information. WHITESIDES and MCCORMICK pled guilty today before U.S. District Judge Margaret Garnett. CRANMER pled guilty before Judge Garnett on May 12, 2025.

“The three defendants engaged in a classic insider trading scheme—buying call options on the stock of a company where insiders know the trading price is about to increase substantially, but the market does not know yet.  Investors expect, and our law requires, that insiders will not misuse confidential information for personal gain,” said U.S. Attorney Jay Clayton. “This Office is committed to prosecuting securities fraud and maintaining a level playing field for all investors.  We will continue working closely with our law enforcement partners to detect, investigate, and bring to justice those who act to undermine the integrity of our financial markets.”

FBI Assistant Director in Charge Christopher G. Raia said: “The defendants admitted to using material nonpublic information for their benefit—more than one million dollars in illicit gains. Insider trading is insidious, damaging the integrity of our financial institutions. The FBI will hold accountable those who attempt to illegally profit from securities fraud schemes in the criminal justice system.”

According to the allegations contained in the Information and Superseding Information and statements made in public filings and in public court proceedings:

WHITESIDES, MCCORMICK, and CRANMER engaged in a scheme to reap illegal profits by misappropriating and trading on material nonpublic information concerning the planned acquisition of Kaman, a publicly-traded company, in violation of duties of trust and confidence owed to the company and its shareholders.

Beginning December 18, 2023, CRANMER, who was an executive at a Kaman subsidiary, learned that Kaman was negotiating an all-cash acquisition at a premium price. CRANMER promptly shared this confidential information with his friend, WHITESIDES, intending for it to be used to purchase Kaman securities before the public announcement of the acquisition. Acting on this information, WHITESIDES acquired Kaman call options in both his own account and in an account in the name of a family member. WHITESIDES subsequently shared the confidential information with his friend, MCCORMICK, who then purchased Kaman stock and call options. Both WHITESIDES and MCCORMICK knew they were trading on confidential information obtained through a breach of a duty owed to Kaman.

Dissatisfied with his anticipated compensation from the acquisition, CRANMER expressed interest in purchasing Kaman securities through an intermediary before the public announcement of the acquisition, acknowledging he was restricted from trading directly. WHITESIDES attempted to arrange a nominee trader for CRANMER, asking MCCORMICK if he would be “comfortable trading on behalf of others” and “using others[’] money.”  CRANMER provided WHITESIDES with $10,000 to fund purchases of Kaman options through MCCORMICK. However, no trades were executed on CRANMER’s behalf before the acquisition announcement.

When Kaman publicly announced on January 19, 2024, that it had agreed to be acquired by a private equity firm in a premium, all-cash transaction, Kaman’s share price rose considerably.  WHITESIDES and MCCORMICK sold their Kaman securities that same day, collectively generating more than $1 million in illegal profits. Afterwards, WHITESIDES attempted to conceal evidence by deleting incriminating text messages.

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JONATHAN WHITESIDES, 46, of Mission Viejo, California, DANIEL MCCORMICK, 61, of Coto de Caza, California, and BRENT CRANMER, 52, of Mission Viejo, California, were each charged with securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WHITESIDES is scheduled to be sentenced by Judge Garnett on October 3, 2025, at 10:30 a.m. MCCORMICK is scheduled to be sentenced by Judge Garnett on September 26, 2025, at 10:30 a.m. CRANMER is scheduled to be sentenced by Judge Garnett on November 10, 2025.

Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission.

The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and Justin V. Rodriguez are in charge of the prosecution.