The U.S. Securities and Exchange Commission (SEC) has charged a former executive of Kaman Corporation and two associates in an alleged insider trading scheme that generated more than US$1 million in profits.
Brent Cranmer, then head of a Kaman Corporation subsidiary, is alleged to have learned in December 2023 that the U.S. aerospace company was preparing itself for sale as part of a confidential process code-named “Project Safeguard.”
According to the SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, Cranmer tipped his friend Jonathan Whitesides, who then tipped Daniel McCormick. Whitesides and McCormick purchased Kaman stock and call options ahead of the Jan. 19, 2024 announcement that Arcline Investment Management had agreed to buy Kaman for US$46 per share. The company’s stock rose to US$45.05 from US$22.43, a gain of about 101%.
The SEC alleges Whitesides realized about US$923,000 in profits, while McCormick gained roughly US$116,000. No trades were made for Cranmer’s personal benefit.
The agency is seeking injunctions and civil penalties against all three defendants, along with disgorgement and prejudgment interest from Whitesides and McCormick, and a ban on Cranmer serving as an officer or director of a public company.
In a parallel criminal case, the U.S. Attorney’s Office for the Southern District of New York filed charges against all three men in May 2025.
The SEC alleged that Cranmer breached his fiduciary duty by sharing confidential information despite signing a non-disclosure agreement. Whitesides and McCormick are alleged to have used the information to trade for personal profit, with McCormick also tipping a friend who profited from the trades.
None of the allegations have been proven in court.