Football fans in Louisiana and around the country will likely know Mychal Kendricks best as a member of the Philadelphia Eagles team that won Super Bowl LII. Reduced playing time prompted the former second-round draft pick to sign with the Cleveland Browns in June 2018, but media reports reveal that the Browns released him on Aug. 29 after media outlets reported that federal prosecutors had charged him with insider trading.
Kendricks is alleged to have made illegal profits of almost $1.2 million on four investments. Prosecutors say that a friend of Kendricks, who worked as an analyst at an investment bank, tipped him off about four pending corporate acquisitions. Kendricks is said to have paid the man $10,000 for the confidential information. Prosecutors say that the investment analyst has also been charged, and both defendants face long custodial sentences if convicted.
In a statement made shortly after news of the charges was made public, Kendricks took full responsibility for his actions and admitted that he knew what he was doing was illegal. The linebacker also vowed to continue working with the authorities and make restitution. A Cleveland Browns representative said that the team was aware of Kendricks’ legal issues when they signed him but chose to release him anyway once news of the alleged criminal activity became public.
Cases involving white collar crimes are often quite complex and can be difficult for juries to understand. This is why prosecutors often seek to settle these cases quickly through negotiated plea agreements. However, their offers may be rescinded if new evidence emerges, which is not uncommon in insider trading, embezzlement or fraud investigations. Experienced criminal defense attorneys may advise their clients to make no public admissions or confessions until the details of their plea agreements have been finalized.
Source: ESPN, Browns release LB Mychal Kendricks after he was charged with insider trading, Staff report, Aug. 29, 2018