Kendricks charged with insider trading
Cleveland Browns linebacker Mychal Kendricks was released by the NFL team Wednesday night, hours after he was charged by federal prosecutors in Philadelphia with insider trading.
Kendricks, who signed a oneyear contract with the Browns in June after winning a Super Bowl title last season with the Eagles, allegedly used tips from an acquaintance to make about $1.2 million in illegal profits on four major trading deals, federal prosecutors said.
The 27-year-old issued a statement earlier in the day admitting to his guilt and apologizing. He expressed regret and accepted “full responsibility” for his actions.
However, the Browns decid- ed after learning more about the case that they couldn’t go forward with Kendricks, who was going to start for the Kendricks team. The Browns issued a statement after traveling to Detroit for Thursday night’s exhibition finale against the Lions. Kendricks did not make the trip.
“Prior to signing Mychal, we were informed that there was a financial situation that he had been involved with in 2014,” Browns general manager John Dorsey said. “We were told Mychal had fully cooperated with investigators as a victim. From what was communicated at that time and based on the numerous questions we asked and further due diligence on our part, including checking with the league office, there was no information discovered that conveyed otherwise.
“Recently, we were provided an update on the matter and the circumstances have changed. We are now dealing with a different set of facts and the additional information we’ve gathered has led us to the decision to release Mychal from our team.”
Kendricks is facing possible prison time and further discipline from the NFL for violating its personal conduct policy.
NFL spokesman Brian McCarthy said the league is reviewing the situation.
Prosecutors allege his co-defendant, Damilare Sonoiki, was paid $10,000 in kickbacks in the scheme from 2014-2015, as well as perks like tickets to Eagles games and tagging along to a music video shoot or nightclub appearances, said U.S. Attorney William McSwain.
Sonoiki had been working as a junior analyst at an unnamed investment bank in New York, prosecutors said. An IMDB profile lists him as a former writer on the popular TV series “Black-ish” as well as other movies and TV shows.
In a statement released by his lawyer, Kendricks said he was sorry and takes full responsibility for his actions.
“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,” he said in the statement. He also claimed he didn’t take any of the profits for himself but didn’t elaborate on where the money went. “I am committed to repaying all of the funds gained illegally and accept the consequences of my actions.”