U.S. Securities and Exchange Commission Litigation Release No. 26378, dated August 18, 2025.
The SEC charged a former Kaman executive, Brent Cranmer, and two friends, Jonathan Whitesides and Daniel McCormick, with insider trading. Cranmer learned about Kaman's planned sale and tipped off Whitesides, who then tipped off McCormick. Whitesides and McCormick profited over $1 million by trading Kaman securities before the acquisition announcement.
In Plain English
Imagine someone learns a big secret: a company is about to be bought. They tell a friend, who tells another friend. These friends then buy a lot of the company's stock, knowing the price will jump when the secret is announced. When the news breaks, they sell their stock for a big profit, using the secret information they weren't supposed to have. This is like knowing a popular toy will be released next week and buying up all the stock at the store before anyone else knows about it, then selling it for more.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Executive Learns of Confidential Deal In December 2023, Brent Cranmer, while working as head of a Kaman subsidiary, learned that Kaman Corporation was planning to sell itself. This information was part of a confidential process codenamed 'Project Safeguard'.
- Executive Tips Off Friend Immediately after learning about the confidential sale process, Cranmer shared this material nonpublic information with his close friend, Jonathan Whitesides. Cranmer asked Whitesides to coordinate trading in Kaman securities on Cranmer's behalf.
- Friend Trades and Tips Another Over the next several weeks, Whitesides purchased Kaman call options for himself. Whitesides also unlawfully communicated the information about the potential transaction to his friend, Daniel McCormick, and asked McCormick to trade on Cranmer's behalf.
- Second Friend Trades and Tips Another McCormick did not trade for Cranmer but instead used the material nonpublic information to purchase Kaman stock and call options for himself. McCormick also tipped his friend, referred to as 'Trader A'.
- Acquisition Announcement and Stock Surge On the morning of January 19, 2024, Kaman announced that Arcline Investment Management, L.P. had offered to buy Kaman for $46 per share. Following the announcement, Kaman's stock price rose by approximately 101%, from $22.43 to $45.05.
- Profits Realized Whitesides and McCormick immediately sold their Kaman securities. Whitesides realized profits of approximately $922,636, and McCormick realized profits of approximately $115,598, for combined profits exceeding $1 million.
The Enforcement Action
On August 18, 2025, the SEC filed charges against Brent Cranmer, Jonathan Whitesides, and Daniel McCormick for insider trading in Kaman Corporation securities. The SEC seeks injunctions, civil penalties, disgorgement with prejudgment interest against Whitesides and McCormick, and an officer and director bar against Cranmer. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against the same individuals on May 23, 2025.