New York football fans may know Mychal Kendricks of the Cleveland Browns for his performance on the field. However, the linebacker may longer play in the NFL as he was charged with insider trading on Aug. 29. Federal prosecutors allege that the football player made almost $1.2 million in profits on four investments in 2012 on the basis of illegal insider information. After the indictment, Kendricks was released by the team, which had signed him to a one-year contract in June.
After the announcement by a U.S. attorney, Kendricks issued a statement admitting to insider trading and apologizing for the incident. In addition, a television writer and former investment banker is also being charged in the case for allegedly helping the football star with his investments. The federal prosecutor said that both people could face significant time in prison if they are convicted. While Kendricks admitted to participating in insider trading, he also said that he trusted the wrong person.
In his statement, Kendricks said that he trusted the financial advice of a former friend who worked at Goldman Sachs and was a Harvard graduate. He admitted to knowing the trades were not legal, committed to repay the funds and said that he was cooperating with authorities in the case. The other person charged in the case formerly worked as an investment banking analyst. In that position, he provided Kendricks with information about four upcoming corporate acquisitions being handled by his employer. In exchange, the football player allegedly provided the man with $10,000 in cash and free football tickets.
When people get involved with major financial decisions, they often rely on the advice of others. Even if they relied on bad advice, they can still face charges for insider trading and other white-collar crimes. A criminal defense attorney can help an alleged offender present a strong defense before trial and in the courtroom.
