Browns LB Mychal Kendricks charged with insider trading
U.S. Attorney William M. McSwain announced the charges at a news conference at his offices in Center City.
Kendricks allegedly made nearly $1.2 million by trading ahead of four acquisition announcements back in 2014, when he was still a member of the Philadelphia Eagles.
Damilare Sonoiki, a former partner at a global investment bank, is also being charged with insider trading for receiving kickbacks from Kendricks, including Eagles tickets and other perks.
Per Jeremy Roebuck of the Philadelphia Inquirer, Kendricks’ attorney, Michael Schwartz, said the linebacker is expected to plead guilty in the coming weeks.
Schwartz released a statement from Kendricks accepting responsibility for his crimes (per Ian Rapoport of NFL Network):
“I apologize. Four years ago, I participated in insider trading, and I deeply regret it. I invested money with a former friend of mine who I thought I could trust and who I greatly admired. His background as a Harvard graduate and an employee of Goldman Sachs gave me a false sense of confidence. To that point, I had worked my tail off since I was 5 years old to become the football player that I am today. I was drawn in by the allure of being more than just a football player. While I didn’t fully understand all of the details of the illegal trades, I knew it was wrong, and I wholeheartedly regret my actions.
“Since the beginning of the investigation, I have fully cooperated with all of the authorities and will continue to do so. I accept full responsibility for my actions. Although I did not take any of the profits for myself, I am committed to repaying all of the funds gained illegally and accept the consequences of my actions.”
Kendricks, 27, spent his first six seasons in the NFL with the Eagles and was part of their Super Bowl-winning team in February. He is set to play his first season with the Browns after signing for them following his release from the Eagles in May.
It remains to be seen what sort of punishment he faces, not just from the federal government, but from the NFL as well.