Mychal Kendricks admits to participating in insider trading

AP

On the latest episode of Hard Knocks, Browns linebacker Mychal Kendricks was shown sharing inside information on the Eagles offense that he gleaned while playing for the team.

That may not make Kendricks friends in Philadelphia, but it’s not illegal. Insider trading of stocks is illegal, however, and Kendricks’ participation in that activity has landed him in trouble with the federal government.

U.S. Attorney William M. McSwain announced in Philadelphia on Wednesday that Kendricks and another man have been charged with insider trading. The activity took place four years ago and Kendricks admitted wrongdoing in a statement released a short time later.

“I 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 that point, I had worked my tail off since I was 5 years old to become the football player that I am today. 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 all of 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 for your time and hopefully your forgiveness.”

The Browns issued a statement saying Kendricks will not join the team in Detroit for Thursday’s game and that they have been in communication with the league.

Kendricks’ attorney told Philly.com that his client is expected to formally plead guilty in the coming weeks. It’s not clear what kind of punishment the government is seeking in Kendricks’ case. The linebacker could also be subject to discipline under the NFL’s personal conduct policy as it covers activity that “undermines” the integrity of the league, teams and/or players.

70 responses to “Mychal Kendricks admits to participating in insider trading

  1. That is a really good response. Good job outta Michael. Let’s see what happens. I would not be surprised if his cooperation leads to “bigger fish” if the law/league are lenient with the punishment.

  2. Wow getting in trouble for something congressmen do all the time. How else do you work a job at 175K a year and come out being a multi millionaire? Some how it is legal for them and no one else.

  3. Browns, Browns, Browns…. SMH….

    You have a mess on your hands. This is becoming a pattern. A LB’er doing insider trading but you also have players setting up rape shacks with their friends, two drug addict WR’s, a rookie QB with major red flags and character concerns and you keep bringing in these low character criminals.

    You won’t turn it around and win with a bunch of criminals running the yard. Hue Jackson has shown a penchant towards grabbing up these kinds and he along with all the criminal and low character morons also need to go.

  4. How many bankers were arrested after 2008? Doesn’t trump tweeting about how historically great the economy is give you chills down your spine? Deep down you know what’s coming…a collapse that will make 2008 look like a blip on the map. Meanwhile the feds go after these minor players in the big scheme of things.

  5. patriots123456 says:

    August 29, 2018 at 11:00 am

    Martha Stewart went to jail for insider trading…
    ———————–
    SUPPOSEDLY. I would doubt it.

  6. Two words….. index funds.

    You can’t beat the market with them but they are simple and have been proven to beat 80% of funds managed by ‘experts’.

  7. patriots123456 says:
    August 29, 2018 at 11:00 am
    Martha Stewart went to jail for insider trading…
    ———————–
    Wrong, she went to jail for trying to cover it up. By the way, has Trump released his income tax returns, yet?

  8. Why do these guys take such risks? All they have to do is invest and get average returns to set themselves up for life. That and control their spending. Instead they take what are practically “lottery winnings” and….buy more lottery tickets. BRILLIANT!

  9. Why should football players (or anyone else) be held to a higher standard than our government officials? When the President is entitled to be above the law, where is the standard for the people who are looking to it’s leadership for guidance & morality?
    I don’t know how the NFL can take this seriously when it’s Owners and Managers are entitled to a privileged status exception along with their political bedfellows.
    Maybe he should blame the “mistake” on Google…the algorithms had it out for him too!

  10. While insider trading is illegal and harms the American financial system, its a better crime to commit than some of the other stuff we hear about NFL players doing. In fact, I am happy Kendricks invests his money and is thinking about his post NFL future.

  11. I dont want him to go to jail, but he deserves to. The is usually always time for this. Its not some innocent thing, like lying on a loan application. Insider trading steals money directly from every day ordinary people. A lot of the time it costs people their life savings.

    I think it would be less disgraceful if he got selling drugs to willing adults, then doing what he did.

  12. Mathew Keen says:
    August 29, 2018 at 11:26 am
    I dont want him to go to jail, but he deserves to. The is usually always time for this. Its not some innocent thing, like lying on a loan application. Insider trading steals money directly from every day ordinary people. A lot of the time it costs people their life savings.

    I think it would be less disgraceful if he got selling drugs to willing adults, then doing what he did.
    —————————-
    Based on your comment, I’m guessing you lie on loan applications. haha

  13. U people obviously dont no what insider trading is. Insider trading isnt finding out a company is going to be good and buying in early. Insider trading is when u get info that something bad is about to happen from an inside source and selling ur shares b4 hand so u dont lose money, or setting up circumstances like that so u can profit off others losses.

    Insider trading is actively stealing money from people. What congress does is using info on bills or deals to make money. That doesnt cost anybody anything, it just lets them make more. Still crappy but not close to as horrible as Kendrick did.

  14. I can’t imagine he would plead guilty unless he had worked out a deal that had no jail time. Probably just a hefty fine and an agreement to stay away from the stock market.

  15. Its not some innocent thing, like lying on a loan application

    —-

    Mortgage fraud was a huge contributor to the meltdown 10 years ago. Nothing innocent about lying on a loan application.

  16. U people obviously dont no what insider trading is. Insider trading isnt finding out a company is going to be good and buying in early. Insider trading is when u get info that something bad is about to happen from an inside source and selling ur shares b4 hand so u dont lose money, or setting up circumstances like that so u can profit off others losses.

    Insider trading is actively stealing money from people. What congress does is using info on bills or deals to make money. That doesnt cost anybody anything, it just lets them make more. Still crappy but not close to as horrible as Kendrick did.

    ________________________________

    Insider trading doesn’t depend on whether the info was good or bad. It could be either. the info has to be 1) non public information and 2) be material info that a reasonable investor would make a decision based on that info.

    That could be something like knowing a firm was about to acquire someone else and acting on that. That would be “good info” and then they profit off of this non-public info.

  17. milehighcityboss says:
    August 29, 2018 at 11:26 am
    While insider trading is illegal and harms the American financial system, its a better crime to commit than some of the other stuff we hear about NFL players doing. In fact, I am happy Kendricks invests his money and is thinking about his post NFL future

    Not as bad? Ok. Well say that 1000 little old ladys buy into a stock with their entire life savings, say it worth 50 a share. Now say Kendricks and his friends are involved with the company and they find out its about to collapse. So they go and sell all their shares, cleaning up bc they bought in at 25, bc of this the share drops to 40 bc theres a big sell off. That means each 1 of those little old ladys just lost 20% of their investment. Then the news comes out about the collapse and it drops to 20 a share b4 they can sell thats 60% of their investment. So not only did these ladies lose 40% of their investment bc the stock failed, they lost 20% more so Kendricks and his friends could line their pockets.

    And your telling me thats not as bad as 1 physical altercation with a gf, or doing drugs? Get out of here. Theres a reason y the DA said hes facing significant jail time. Id rather have him punch me in the face then stealing the life savings of every1 in my town.

  18. mcnabbster says:
    August 29, 2018 at 11:14 am
    he totally has snitched on somebody to cut a deal, or he himself was snitched on.

    —————————-
    Probably both. He is just one step as they work the food chain. He may even have been the one that led to his contact at Goldman Sachs even though the reports make it sound like the other way around. (Feds would do that so that its blurry which way their hunt is moving)

  19. bannedfromchoirpractice says:
    August 29, 2018 at 11:17 am

    By the way, has Trump released his income tax returns, yet?

    —————————-
    They are stapled to the back of the NFL PSI results. Rumor has it that they would reveal he is rich.

  20. sortssux says:
    August 29, 2018 at 11:02 am
    Wow getting in trouble for something congressmen do all the time. How else do you work a job at 175K a year and come out being a multi millionaire? Some how it is legal for them and no one else.

    ——

    Insider trading is literally legal for congressmen and their staffs. I agree. It’s crazy and unjust. And to think how much more insider information they have at their disposal, like what corporation is about to get a big government contract, etc.

  21. Let the dude play football. He is an active tax-paying member of society. The answer to every issue is not for someone to lose their job. How is he going to pay back anyone if he doesn’t have a job? The NFL has no role in this.

  22. Mathew Keen says:
    August 29, 2018 at 11:54 am

    Not as bad? Ok. Well say that 1000 little old ladys buy into a stock with their entire life savings, say it worth 50 a share. Now say Kendricks and his friends are involved with the company and they find out its about to collapse. So they go and sell all their shares, cleaning up bc they bought in at 25, bc of this the share drops to 40 bc theres a big sell off. That means each 1 of those little old ladys just lost 20% of their investment. Then the news comes out about the collapse and it drops to 20 a share b4 they can sell thats 60% of their investment. So not only did these ladies lose 40% of their investment bc the stock failed, they lost 20% more so Kendricks and his friends could line their pockets.

    And your telling me thats not as bad as 1 physical altercation with a gf, or doing drugs? Get out of here. Theres a reason y the DA said hes facing significant jail time. Id rather have him punch me in the face then stealing the life savings of every1 in my town.

    ______________________________

    Don’t be so dramatic. I am pretty sure the volume of stock in which Mr. Kendricks was able to purchase would not move the needle in the manner in which you suggested.

  23. jxt2521 says:
    August 29, 2018 at 11:09 am

    Two words….. index funds.

    You can’t beat the market with them but they are simple and have been proven to beat 80% of funds managed by ‘experts’
    _______________________________________________________________

    Yep. It’s staggering what the difference between a .04% and 1% expense ratio is over the years.

  24. Matthew Keen, you’re a bit wrong here, or at least a bit limited in your explanation. Insider trading isn’t stealing money from someone else, it simply means you have knowledge that the public doesn’t and you use it to your advantage. It has to do with anyone having foreknowledge or information the public typically wouldn’t have and then using it to either buy or sell a stock, bond, etc. If I know my company just came up with great new product and urge you to buy our stock before anyone else knows, that’s insider trading.
    You are wrong if you think politicians can do it legally. If politicians have any information that might benefit a company, or even an entire sector of industry, before it’s public and they use that information to buy or sell a stock, that’s insider trading, and they are NOT allowed to do it. Most politicians put their money in blind trusts and let someone else manage it to avoid this happening.
    In general insider trading is bad because it can be used to manipulate stocks and it obviously gives some people an advantage that others don’t have, which is in conflict with a free market economy. The only way it hurts someone else is that they don’t have the “inside” knowledge, which is why it’s illegal.

  25. logicalvoicesays says:
    August 29, 2018 at 10:59 am

    “He was just on Hard Knocks! Of course he was drafted and produced by the Philadelphia Eagles”!!!

    That’s right the Eagles coaches teach classes on how to commit stock stock fraud. It take a real clown to be a fan of the bottom feeding Redskins and troll another team? This is a major violation.

  26. A sizable percentage of Harvard grads are amoral sociopaths, doubly so if they go into investment banking. Those credentials are a giant red flag, not a positive.

  27. kuechlyisabeast

    U forgot part 3. A about disclosure. Those first 2 are only illegal if u dont disclose why u made the trade. So u could make a trade based on private inside info and still be legal if you publicly say why u did it.

  28. From the linked article:

    Looks like he knew it was wrong from the getgo.

    “Prosecutors said Kendricks, who now plays for the Cleveland Browns, exchanged cash bribes including Eagles tickets and a set visit to a taping for a music video featuring pop star Teyana Taylor in exchange for inside information used to make four stock trades between 2013 and 2015.”

  29. His largest error was not simply getting a position in the Trump administration. That way this type of insider trading would not only have been allowed but encouraged. Eh, live and learn.

  30. discipline under the NFL’s personal conduct policy as it covers activity that “undermines” the integrity of the league, teams and/or players.
    ——–
    Hilarious, any owner who decided to push punishment is a hypocrite. They all engage in insider trading daily. All criminals.

  31. bluecat013 I was giving the example on how insider trading can be horrible and hurt people directly. Also I never said what the politicians did was illegal, just that that form of insider trading didnt directly hurt people. But it can be legal if the politicians disclose why they did it. So say a new bill will help a company, the politician can buy that stock as long as he tells people in a reasonable time why he did it, giving them a chance to do it.

    An easy but not perfect example of insider trading is kind of what happened with draftkings and that other site. Where the programmers used inside info from the company to build rosters that ended up winning like 90% of all the money on the site. This led to people losing complete faith in the company, believing they cant win vs the insiders. Bc of this the value of these companies dropped significantly bc people stopped playing.

    If u look at those companies as if their the entire US stock market, the programmers like inside traders, and the players like ordinary stock buyers, then u will realize how it does hurt ordinary people, and how if it isnt stopped and punished severely, how it could collapse the entire US stock market.

  32. More Cowbell says:
    Rumor has it that they would reveal he is rich.
    ———————-
    Those same rumors were swirling about Manafort, Flynn, Cohen, Gates, Papadopoulos, etc., etc., etc. Ivanka, Trump Jr., and Kushner don’t have anything to worry about, though. They’re very honest people. Very honest. Very honest. People. Happy people. Not Sad.

  33. jxt2521 says:
    August 29, 2018 at 11:09 am

    Two words….. index funds.

    You can’t beat the market with them but they are simple and have been proven to beat 80% of funds managed by ‘experts’.

    ————————————

    One word. Plastics.

  34. Its not some innocent thing, like lying on a loan application

    —-

    Mortgage fraud was a huge contributor to the meltdown 10 years ago. Nothing innocent about lying on a loan application.
    _____

    And yet, Quicken Loans advertises that they have “less income verification requirements” than other mortgage lenders.
    The mortgage loan industry encourages people to get in over their heads because they understand that there is less consequence for them than the borrower.

  35. “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.”

    I’ve never known much about this guy but I know I admire his taking accountability in such a forthright manner. It doesn’t excuse what he did but it’s definitely a step toward redemption; a big step.

  36. sortssux says:
    August 29, 2018 at 11:02 am
    Wow getting in trouble for something congressmen do all the time. How else do you work a job at 175K a year and come out being a multi millionaire? Some how it is legal for them and no one else.

    —————

    So you think that being a Congressman gives you inside information into privately held companies? Most of these guys don’t come out “millionaires”…..in fact the ones who do become wealthy typically do so after they leave Congress and become lobbyists.

  37. “If you look at those companies as if their the entire US stock market”.

    Following the opinions of someone who constantly uses “u” instead of “you” and “their” incorrectly instead “they’re” will probably not increase your brokerage account.

  38. Ranks right up there with Nassib’s 10% interest accounts & Haslam’s doubling down on Gordon.

  39. Mathew Keen says:
    August 29, 2018 at 12:27 pm
    kuechlyisabeast

    U forgot part 3. A about disclosure. Those first 2 are only illegal if u dont disclose why u made the trade. So u could make a trade based on private inside info and still be legal if you publicly say why u did it.
    ———-
    Thanks for this explanation….reading all of these posts, I tried putting myself in this situation…if I got information that my stock was about to go bad….it would seem like good business to dump….now I understand..thanks

  40. And here I thought this was going to be one of those extremely rare cases of accepting responsibility without excuses, and then this “Although I did not take any of the profits for myself…”. So you did something ethically and legally wrong, BUT you’d just like us to know you didn’t take any profit. So why did you do it, and why do you have to point that out?

  41. Another “statement” written in perfect english. This is the biggest red flag signaling that it was not written by him nor is it sincere. Did you hear him speak on hard knocks? NO WAY was this written by him. Love how these athletes that cannot speak a full sentence of well spoken english once in their lives, all of a sudden speak perfect english whence “writing” a statement once they get in trouble. Who are they fooling?

Leave a Reply

You must be logged in to leave a comment. Not a member? Register now!

This site uses Akismet to reduce spam. Learn how your comment data is processed.