Football fans in South Carolina may be more familiar with Mychal Kendricks on the field than in dealing with investment matters, but the Cleveland Browns player was charged with insider trading by federal prosecutors. After the U.S. Attorney’s office announced the charges on August 29, the Browns released the linebacker despite signing him to a one-year contract just months ago in June. Kendricks is accused of making around $1.2 million in profits on investments four years ago due to illegal insider information.
After the insider trading indictment was released, the football player issued a statement apologizing for his actions. He said that he knew that his actions were wrong and took full responsibility. Kendricks noted that he wanted to be “more than just a football player,” and noted that he placed his trust in a more skilled, experienced friend. He said that his former friend was Harvard-educated and an investment banker with Goldman Sachs.
Kendricks is not the only person charged in the case; a television writer and former investment banker is also accused of insider trading. Both could face significant prison time if they are convicted according to federal prosecutors. The other person charged formerly worked as an investment banking analyst at a major firm, and he allegedly provided Kendricks with insider information about four upcoming acquisitions taking place at his employer in 2014. In exchange, the football player reportedly provided his friend with $10,000 in cash as well as free football tickets and other perks.
People can find themselves caught up in questionable financial transactions for a number of reasons, and they may have been deceived by others. When people are facing charges for financial fraud or other white-collar crimes, they might work with a criminal defense attorney. A lawyer may be able to put forward a strong defense, challenge prosecution evidence and work to avoid a conviction.