NFL linebacker Mychal Kendricks could spend up to a year in prison after federal authorities Wednesday charged him with insider trading relating to investments made in 2014, according to CBS Sports.
Spoke with attorney/legal analyst David Weinstein. He estimates #Browns LB Mychal Kendricks is likely to serve 8-12 months in prison for insider trading. Advisory sentence would likely be higher but reduced by split sentence, house arrest, community service, etc.
— Cody Benjamin (@CodyJBenjamin) August 29, 2018
The Browns released Kendricks shortly after the charges were made public.
We’ve released LB Mychal Kendricks
— Cleveland Browns (@Browns) August 30, 2018
According to Philly.com, Kendricks’ attorney, Michael Schwartz, said the linebacker is expected to plead guilty in the coming weeks. Kendricks made nearly $1.2 million, NBC Philadelphia notes, according to U.S. Attorney William M. McSwain.
Television writer, Damilare Sonoiki, also has been charged with helping Kendricks in his investments.
Kendricks released a statement Wednesday, admitting to participating in insider trading years ago and apologizing for his actions. He said he “fully cooperated” with the investigation and will repay all of the funds he obtained illegally. The full statement can be read below:
“I would like to 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 this point, I had worked my tail off since I was 5 years old to become a football player. 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 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.
“I sincerely apologize to my coaches, the owners, and my teammates on the Eagles and the Browns, the NFL, and the magnificent fans to whom I owe my career. I also apologize to my family, who I have failed in this. You all deserve better, and I will work my hardest to re-earn your trust and respect, serve as an advocate to educate others, and show you that I will never be involved in anything like this again. Thank you.”
Browns general manager John Dorsey issued a statement via the Browns’ official website, detailing developments leading up to the veteran’s release:
“Prior to signing Mychal, we were informed that there was a financial situation that he had been involved with in 2014. 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. Due to the ongoing legal nature of this situation, we will have no further comments.”
Kendricks was released by the Eagles in May after spending his first six NFL seasons with Philadelphia. The Browns signed Kendricks to a one-year deal in June.