The defendants then traded in Kodak stock, resulting in profits of more than $500,000 for Andrew Stiles and more than $700,000 for Gray Stiles, the indictment said.
One day before the proposed loan was announced, Andrew Stiles texted his cousin "tmw," prompting Gray Stiles to respond "hot damn," the indictment said.
Andrew Stiles was arrested at his Charleston, South Carolina home, and Gray Stiles was arrested in Virginia.
Ron Fischetti, a lawyer for Andrew Stiles, said his client's arrest came "out of nowhere" following a year of communications with prosecutors.
A lawyer for Gray Stiles did not immediately respond to requests for comment.