Eagles

Mychal Kendricks is Facing Federal Charges for Insider Trading

By Kevin Kinkead

Published: Aug 29th, 2018 · 10:54 AM EDT

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Yeesh..

Per Ian Rapoport:

A statement from #Browns LB Mychal Kendrick, who has just been charged by the feds for insider trading. Wow. pic.twitter.com/0IEsV6lPTh

— Ian Rapoport (@RapSheet) August 29, 2018

More details after the jump:

Kendricks allegedly provided $10K in catsh and Eagles tickets in exchange for the inside stock information.

— Jeremy Roebuck (@jeremyrroebuck) August 29, 2018

And from Philly.com:

U.S. Attorney William M. McSwain announced the charges at a news conference at his offices in Center City.

Kendricks’ attorney, Michael Schwartz, said the linebacker, who now plays for the Cleveland Browns, is expected to plead guilty in the coming weeks.

I’ll update with more info when it comes in.

Edit:

Authorities say he made $1.2 million from the trading.

And here’s more from NBC 10:

Sonoiki set up a bank account that Kendricks could access, according to investigators. Soon after they began their trading and used coded language in a text to disguise the initial $80,000 transfer into the account.

Kendricks paid Sonoiki in cash during in-person meetings, including one at Philadelphia’s 30th Street Station.

“Within a year of beginning his employment at the investment bank, he was brazenly committing crimes,” McSwain said. “He is alleged to have passed material non-public info to an acquaintance, Mr. kendricks.”

Edit 2: A Statement from the Browns:

Our statement on LB Mychal Kendricks: pic.twitter.com/SJT4RPdo0o

— Cleveland Browns (@Browns) August 29, 2018

Edit 3:

haha –

🚨THE CODE WAS CHEESESTEAKS 🚨 https://t.co/vONR25fbdL pic.twitter.com/YDxSUTvK2u

— Ryan J. Reilly (@ryanjreilly) August 29, 2018

If you want to read the full 24 page document, here’s the link:

Mychal Kendricks insider trading charges

Edit 4:

Apparently the Browns were cool with this…

Per source, Mychal Kendricks was fully transparent throughout his signing process with the #Browns. He did not hide this from them during this process and both sides felt comfortable for him to sign the one-year contract, worth up to $3.5M. https://t.co/cPgCCB6qg1

— Jordan Schultz (@Schultz_Report) August 29, 2018

Really? A guy told you about insider trading and you signed him anyway? Lemme get some of that on Hard Knocks.

Also, here’s video of U.S. Attorney William McSwain discussing the charges:

NEW: US attorney announces insider trading charges against Cleveland Browns player Mychal Kendricks, alleging Kendricks profited $1.2M and provided $10k cash and Eagles tickets in exchange for information; Kendricks formerly played for the Philadelphia Eagles. pic.twitter.com/22kgC7Jmg0

— NBC News (@NBCNews) August 29, 2018

Edit 5:

conflicting reports –

Team is gathering info on Kendricks because this is news to them. They weren’t aware when they signed Kendricks, source says. https://t.co/eBFuC2u8rc

— Mike Garafolo (@MikeGarafolo) August 29, 2018