Cleveland Browns' Mychal Kendricks facing insider-trading charges
PHILADELPHIA — Cleveland Browns linebacker Mychal Kendricks and a former investment banker are facing insider trading charges. U.S. Attorney William M. McSwain announced indictments against them in Philadelphia Wednesday morning.
Kendricks formerly played for the Philadelphia Eagles and was a Super Bowl champion. Prosecutors say Kendricks used trading tips to make about $1.2 million in illegal profits on four major trading deals. A co-defendant, Damilare Sonoiki, was allegedly paid $10,000 in kickbacks as well as perks including tickets to Eagles games.
In a statement released by Kendricks' attorney, he admitted to wrongdoing, saying in part:
"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."
Kendricks goes on to say that he was "drawn to the allure" of being more than 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," the statement said.
The Browns have also released a statement, saying they are "in communication with the league office," and that Kendricks will not be in Detroit for the team's final preseason game.
