Brent Cranmer; Jonathan Whitesides; and Daniel McCormick

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26378 / August 18, 2025

Securities and Exchange Commission v. Brent Cranmer, Jonathan Whitesides, and Daniel McCormick, No. 25-cv-6816 (S.D.N.Y. filed Aug. 18, 2025)

SEC Charges Former Executive and Friends in Insider Trading Scheme

On August 18, 2025, the Securities and Exchange Commission filed charges against Brent Cranmer, Jonathan Whitesides, and Daniel McCormick, for their alleged involvement in insider trading that generated over a million dollars in profits from trading in the securities of Kaman Corporation in advance of a January 19, 2024 announcement that Arcline Investment Management, L.P. had offered to acquire Kaman.   

According to the SEC’s complaint, while Cranmer was working as the head of a Kaman subsidiary, he learned that Kaman was planning to sell itself.  Cranmer allegedly tipped his friend Whitesides in an effort to coordinate trading for himself, and then Whitesides tipped his friend, McCormick.  The complaint alleges that Whitesides and McCormick made combined profits of over a million dollars by trading in advance of the announcement, but no one traded for Cranmer.  

The SEC’s complaint, filed in the United States District Court for the Southern District of New York, charges Cranmer, Whitesides, and McCormick with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks injunctions and civil penalties against Cranmer, Whitesides, and McCormick, disgorgement plus 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 Cranmer, Whitesides, and McCormick on May 23, 2025.

The case originated from the SEC’s Enforcement Division’s Market Abuse Unit’s Analysis and Detection Center, which uses data analysis tools to detect suspicious trading patterns.  The investigation was conducted by Sara Kalin and John Rymas of the Market Abuse Unit, and was supervised by Assistant Director Diana Tani of the Los Angeles Regional Office and Market Abuse Unit Chief Joseph Sansone.  The litigation will be led by Ruth Pinkel of the Los Angeles Regional Office.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the Financial Industry Regulatory Authority (FINRA).