Cleveland Browns linebacker Mychal Kendricks was released by the NFL team Wednesday night, hours after he was charged by federal prosecutors in Philadelphia with insider trading.

Kendricks, who signed a one-year contract with the Browns in June after winning a Super Bowl title last season with the Eagles, allegedly used tips from an acquaintance to make about $1.2 million in illegal profits on four major trading deals, federal prosecutors said.

The 27-year-old issued a statement earlier in the day admitting his guilt and apologizing. He expressed regret and accepted "full responsibility" for his actions.

However, the Browns decided after learning more about the case that they couldn't go forward with Kendricks, who was going to start for the team. The Browns issued a statement after traveling to Detroit for Thursday night's exhibition finale against the Lions. Kendricks did not make the trip.

"Prior to signing Mychal, we were informed that there was a financial situation that he had been involved with in 2014," Browns general manager John Dorsey said. "We were told Mychal had fully cooperated with investigators as a victim. From what was communicated at that time and based on the numerous questions we asked and further due diligence on our part, including checking with the league office, there was no information discovered that conveyed otherwise.

"Recently, we were provided an update on the matter and the circumstances have changed. We are now dealing with a different set of facts and the additional information we've gathered has led us to the decision to release Mychal from our team."

Kendricks is facing possible prison time and further discipline from the NFL for violating its personal conduct policy.

NFL spokesman Brian McCarthy said the league is reviewing the situation.

Prosecutors allege his co-defendant, Damilare Sonoiki, was paid $10,000 in kickbacks in the scheme from 2014-2015, as well as perks like tickets to Eagles games and tagging along to a music video shoot or nightclub appearances, said U.S. Attorney William McSwain.

Sonoiki had been working as a junior analyst at an unnamed investment bank in New York, prosecutors said. An IMDB profile lists him as a former writer on the popular TV series "Black-ish" as well as other movies and TV shows.

In a statement released by his lawyer, Kendricks said, "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." He added that he's "committed to repaying all of the funds gained illegally."

He also claimed he didn't take any of the profits for himself, but didn't elaborate on where the money went.

Kendricks said he has been cooperating with authorities since the investigation began.

McSwain, along with representatives from the FBI and the Securities Exchange Commission - which filed a separate complaint - said Kendricks and Sonoiki used coded language in messages to try to hide their actions. McSwain said Sonoiki, who had limited trading powers at the time, would give non-public information to Kendricks about acquisitions and other deals that would affect the price of securities for at least four different companies.

Stephanie Avakian, co-director of the U.S. Securities and Exchange Commission's Division of Enforcement, said in one message that when Sonoiki was asking for payment, he told Kendricks he liked Philadelphia bread used in cheesesteaks more than the bread in New York and asked that Kendricks bring him some.

They also had a conversation pretending to be talking about changing the number on Kendricks' jersey to 80, meant to signify the amount of money that should be deposited into a new trading account, she said.

If the men are convicted, they could face up to 25 years in prison and a fine of up to $5.25 million as well as the seizure of any profits made from the insider trading.

The Browns signed Kendricks as a free agent, bringing him in to upgrade their linebacker corps following an 0-16 season. Kendricks spent six years with the Eagles, who drafted him in the second round in 2012 after he played at California.

The 5-foot-11, 240-pounder recorded a team-high eight tackles in last season's NFC Championship against Minnesota and had four in Philadelphia's Super Bowl win.

CBSSports.com's Cody Benjamin notes that Kendricks "may have ruffled some feathers in Philadelphia this week when his latest comments on HBO's 'Hard Knocks' highlighted perceived weaknesses in some of his former Eagles teammates.

But Kendricks appears to have much bigger concerns now."

"From a legal standpoint," Benjamin writes, "Kendricks' career could take the biggest hit by way of incarceration.

"David Weinstein, a South Florida criminal defense attorney and former state prosecutor, told CBSSports.com on Wednesday that Kendricks could serve something like 8-12 months in prison. Using a calculation involving federal sentencing guidelines, he estimates that Kendricks will receive an advisory sentence of something like two to five years in jail time but that "the judge should go down from that sentence" for a number of reasons -- either thanks to a split sentence, a mutual sentence agreement, house arrest, community service requirements or a combination of them."

Benjamin quotes Weinstein as adding, "The advisory sentence is going to be higher. Three to four to five years. But if he enters into a plea, they'll figure out what the guidelines are going to be. Assuming he's going to pay back whatever money he made from this, he'll serve much less time ... and (still) I think of people like Martha Stewart who went in and did some time, and it's unfair just because this guy's an athlete that he's going to get off with no time at all. I've got to think that it's going to be in the neighborhood of just around a year or so, with maybe half of it on home confinement."</s>Ron Schwane/Associated Press

The Cleveland Browns released linebacker Mychal Kendricks following charges of insider trading, the team announced Wednesday.

General manager John Dorsey provided a statement on the team's decision, noting "circumstances have changed" from when he signed with Cleveland in the offseason, via Daryl Ruiter of 92.3 The Fan:

Kendrick allegedly made about $1.2 million "by trading ahead of four acquisition announcements" and has been charged with "conspiracy to commit securities fraud and committing securities fraud," per Alicia Victoria Lozano of NBC Philadelphia.

He faces a maximum prison sentence of 25 years as well as a $5.25 million fine.

Kendricks admitted fault to his actions in a prepared statement Wednesday, per Darren Rovell of ESPN:

According to Mary Kay Cabot of Cleveland.com, the Browns were aware the 27-year-old was part of an investigation when they signed him, but they did not know he was the focus.

He signed a one-year, $2.25 million deal in June.

Kendricks spent his first six seasons in the NFL with the Philadelphia Eagles, starting in the team's Super Bowl win last February. He started 74 of the 85 games he has played in since the Eagles drafted him in 2012.

Joe Schobert and Christian Kirksey will remain key parts of Cleveland's defense with Kendricks no longer on the team.</s>The NFL linebacker has admitted to his role and apologized.

Mychal Kendricks has been released by the Cleveland Browns after being charged with insider trading, and now he could face up to 12 months in prison.

The Browns announced Wednesday evening that they had cut ties with the linebacker, just hours after he was charged with using inside information to make $1.2 million in ill-gotten profits. As Fox News reported, Kendricks is accused of getting inside information between 2013 and 2015 from Damilare Sonoiki, an investment banker and writer for the television show Black-ish.

The charges claim that Kendricks paid Sonoiki $10,000 in kickbacks and also got him tickets for Eagles games and other VIP perks.

The Browns had signed Kendricks in June as a free agent after his time with the Philadelphia Eagles came to an end.

In a statement on Wednesday evening, Browns General Manager John Dorsey said that the team knew about the insider trading investigation but had believed Mychal Kendricks was working with investigators as a victim, not the target of the investigation.

“Recently, we were provided an update on the matter and the circumstances have changed,” Dorsey said. “We are now dealing with a different set of facts and the additional information we’ve gathered has led us to the decision to release Mychal from our team.”

Kendricks could have bigger problems. CBS Sports reporter Cody Benjamin reported that legal analyst David Weinstein says the linebacker is likely to face between eight and 12 months in prison, with the advised sentence higher but likely split up between the actual time in prison and house arrest or community service.

Mychal Kendricks could face up to 25 years in prison and a $5.25 million fine for his alleged role in insider trading. But the linebacker appears to be cooperating with authorities, and on Wednesday released a statement apologizing for his actions.

“I would like to apologize,” Kendricks said in the statement released by his attorneys via ESPN. “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.”

Mychal Kendricks said while he didn’t full understand the insider trading scheme in which he was participating, he knew that it was wrong. It is not yet clear whether he will plead guilty to the charges or when he could be sentenced.</s>PHILADELPHIA — Cleveland Browns linebacker Mychal Kendricks and a former investment banker are facing insider trading charges. U.S. Attorney William M. McSwain announced indictments against them in Philadelphia Wednesday morning.

Kendricks formerly played for the Philadelphia Eagles and was a Super Bowl champion. Prosecutors say Kendricks used trading tips to make about $1.2 million in illegal profits on four major trading deals. A co-defendant, Damilare Sonoiki, was allegedly paid $10,000 in kickbacks as well as perks including tickets to Eagles games.

In a statement released by Kendricks' attorney, he admitted to wrongdoing, saying in part:

"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."

Kendricks goes on to say that he was "drawn to the allure" of being more than 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," the statement said.

The Browns have also released a statement, saying they are "in communication with the league office," and that Kendricks will not be in Detroit for the team's final preseason game.</s>The Cleveland Browns announced Wednesday evening that they had released linebacker Mychal Kendricks hours after he was hit with federal insider trading charges.

Investigators say that Damilare Sonoiki, a former investment banker and writer on the TV show "Black-ish," passed insider information to Kendricks between 2013 to 2015, while Kendricks was playing for the Philadelphia Eagles.

Kendricks allegedly made about $1.2 million in illegal profits on four major trading deals. In exchange, Sonoiki was paid $10,000 in kickbacks as well as perks that included tickets to Eagles games and meet-and-greets with recording artist Teyana Taylor.

In a statement, Browns General Manager John Dorsey said the club was aware of "a financial situation that [Kendricks] had been involved with in 2014" before Cleveland signed the linebacker to a one-year free agent deal this past June.

"We were told Mychal had fully cooperated with investigators as a victim," added Dorsey, who said that the club's due diligence had turned contradictory information.

"Recently, we were provided an update on the matter and the circumstances have changed," Dorsey concluded. "We are now dealing with a different set of facts and the additional information we’ve gathered has led us to the decision to release Mychal from our team."

In a statement released by his lawyer Wednesday, Kendricks said he was sorry and takes full responsibility for his actions.

"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," he said in the statement. He also claimed he didn't take any of the profits for himself but didn't elaborate on where the money went.

"I am committed to repaying all of the funds gained illegally and accept the consequences of my actions," he said.

The Browns signed Kendricks as a free agent in June, bringing on the Super Bowl winner to upgrade their linebacker corps following an 0-16 season. Kendricks spent six years with the Eagles, who drafted him in the second round in 2012 after he played at California.

The 5-foot-11, 240-pounder recorded a team-high eight tackles in last season's NFC Championship against Minnesota and had four in Philadelphia's Super Bowl win.

Kendricks and Sonoiki could face up to 25 years in prison and a fine of up to $5.25 million as well as the seizure of any profits made from the insider trading.

The Associated Press contributed to this report.</s>
• The Cleveland Browns released linebacker Mychal Kendricks after federal prosecutors charged him with insider trading.
• Kendricks admitted his wrongdoing in a statement shortly after the charges were made public.
• While Kendricks is no longer on the Browns roster, there's a chance that he could still get paid by the franchise if he files a grievance.



The Cleveland Browns released linebacker Mychal Kendricks on Thursday after federal prosecutors charged him with insider trading.

In a statement, the Browns explained that they had been somewhat aware of Kendricks' situation when they signed him back in June on a one-year deal.

"Prior to signing Mychal, we were informed that there was a financial situation that he had been involved with in 2014. We were told Mychal had fully cooperated with investigators as a victim. From what was communicated at that time and based on the numerous questions we asked and further due diligence on our part, including checking with the league office, there was no information discovered that conveyed otherwise."

As the Browns argue, "circumstances have changed," and now Kendricks is no longer with the organization.

"Recently, we were provided an update on the matter and the circumstances have changed. We are now dealing with a different set of facts and the additional information we’ve gathered has led us to the decision to release Mychal from our team. Due to the ongoing legal nature of this situation, we will have no further comments."

Kendricks admitted to his wrongdoing in a statement on Wednesday, shortly after the charges were announced.



Although the Browns cut Kendricks from their roster, there's still a chance Cleveland could be on the hook for paying him. According to Mike Florio at ProFootballTalk, the Browns own language in their statement gives them away.

As Florio notes, the Standard Player Contract allows termination "if Player has engaged in personal conduct reasonably judged by Club to adversely affect or reflect on Club."

Florio recommends Kendricks to consider filing a grievance, as the actions that the Browns are claiming "adversely affect or reflect" on the franchise are things that they admit to already being aware of to a certain extent. Even if the Browns weren't aware of the entirety of the situation, Florio argues, it looks as though they had enough information to raise some red flags and do a bit more homework before signing him.

That said, the idea of Kendricks succeeding in such a case feels like a long shot, as the Browns claim that Kendricks presented himself as a victim initially. Also, it would be tough to argue after admitting to his crime, that it was the Browns own fault for signing him without adequately vetting his involvement in financial misdeeds.

While it's still unclear how things will play out, it feels likely that Kendricks won't be signing another NFL contract until his legal situation is settled.</s>PHILADELPHIA — The Latest on Mychal Kendricks, the NFL linebacker charged with insider trading Wednesday and later released by the Cleveland Browns (all times local):

Cleveland Browns linebacker Mychal Kendricks was released by the team Wednesday night, hours after being charged by federal prosecutors with insider trading.

Kendricks signed a one-year contract with the Browns in June after winning a Super Bowl title last season with the Philadelphia Eagles.

Earlier, U.S. Attorney William M. McSwain said Kendricks made approximately $1.2 million profit off illegal, nonpublic information in four separate major deals. Kendricks issued a statement admitting his guilt and apologizing. He expressed regret and accepted "full responsibility" for his actions.

Kendricks did not travel with the Browns for their Thursday night exhibition finale in Detroit, and the team decided to part ways with the 27-year-old after arriving in Michigan.

Kendricks is facing possible prison time and further discipline from the NFL for violating its personal conduct policy.

Federal prosecutors in Philadelphia say Cleveland Browns linebacker Mychal Kendricks used insider trading tips from an acquaintance to make about $1.2 million in illegal profits on four major trading deals.

United States Attorney William McSwain says co-defendant Damilare Sonoiki was paid $10,000 in kickbacks as well as perks like tickets to Philadelphia Eagles games. Kendricks played for the Eagles before signing with the Browns in June.

Prosecutors say Sonoiki was a trader at an unnamed firm. An IMBD profile lists him as a writer on the popular TV series "Black-ish" as well as other movies and TV shows.

Kendricks says in a statement released by his lawyer Wednesday that he's sorry and "deeply" regrets his actions.

He says he "didn't fully understand all of the details of the illegal trades."

NFL spokesman Brian McCarthy says the league is reviewing the situation.</s>The Cleveland Browns released linebacker Mychal Kendricks on Wednesday after he was hit with federal charges for insider trading.

U.S. Attorney William M. McSwain, based in Philadelphia, announced the charges earlier Wednesday. The complaint said Kendricks turned $80,000 into $1.2 million in a span of five months.

"Prior to signing Mychal, we were informed that there was a financial situation that he had been involved with in 2014," Browns general manager John Dorsey said in a statement. "We were told Mychal had fully cooperated with investigators as a victim. From what was communicated at that time and based on the numerous questions we asked and further due diligence on our part, including checking with the league office, there was no information discovered that conveyed otherwise.

"Recently, we were provided an update on the matter and the circumstances have changed. We are now dealing with a different set of facts and the additional information we've gathered has led us to the decision to release Mychal from our team. Due to the ongoing legal nature of this situation, we will have no further comments."

Kendricks joined the Browns on a one-year, $2.25 million contract, which guaranteed him $500,000, in June after he was released by the Eagles in May.

Cleveland.com reported earlier Wednesday that the Browns knew Kendricks was involved in a federal investigation when they signed him, but they were led to believe by Kendricks' camp that he was not the target of the probe for committing any crimes.

Kendricks, 27, publicly admitted his part in the alleged scheme after the charges were announced Wednesday, saying he is cooperating with authorities and paying back the approximately $1.2 million he profited.

"Four years ago, I participated in insider trading, and I deeply regret it," Kendricks said in a statement. "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."

"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."

According to McSwain, former investment banker Damilare Sonoiki set up a bank account for Kendricks to access and in return received cash and other kickbacks for passing on insider knowledge.

"Within a year of beginning his employment at the investment bank, he was brazenly committing crimes," McSwain said, per NBC 10 in Philadelphia. "He is alleged to have passed material non-public info to an acquaintance, Mr. Kendricks."

According to Philly.com, both Sonoiki and Kendricks are expected to plead guilty in the next few weeks.

Kendricks, who played college ball at Cal, was selected by Philadelphia in the second round of the 2012 draft. In six seasons with the Eagles, he appeared in 85 games (74 starts) and recorded 459 tackles, 14 sacks, three interceptions and six forced fumbles.

En route to winning a Super Bowl championship with the Eagles last season, Kendricks logged 77 tackles, two sacks and six passes defensed while playing 63.3 percent of defensive snaps.</s>PHILADELPHIA — Cleveland Browns linebacker Mychal Kendricks has been charged with using insider trading tips from an acquaintance to make about $1.2 million in illegal profits on four major trading deals, federal prosecutors announced Wednesday.

Co-defendant Damilare Sonoiki was paid $10,000 in kickbacks in the scheme from 2014-2015, as well as perks like tickets to Philadelphia Eagles games and tagging along to a music video shoot or nightclub appearances, said U.S. Attorney William McSwain. Kendricks played for the Eagles before signing with the Browns in June.

Sonoiki had been working as a junior analyst at an unnamed investment bank in New York, prosecutors said. An IMD B profile lists him as a writer on the popular TV series “Black-ish” as well as other movies and TV shows.</s>White collar crime doesn't sit well with the Browns -- the team just released linebacker Mychal Kendricks in the wake of his insider trading charges.

Kendricks has admitted to breaking federal laws by trading perks for tips in a scheme to make an ill-gotten fortune. Officials say Kendricks turned $80k into roughly $1.2 million using private information that wasn't available to the public.

Kendricks issued a public apology for his role in the scheme -- accepting blame and saying he's ready to deal with the consequences.

Those consequences could be steep -- he's facing serious prison time if convicted. And, since he's already confessed, he'll almost certainly be convicted. Clearly, the Browns want no part of his legal drama and decided to simply cut bait Wednesday.

Kendricks was a member of the Philadelphia Eagles' Super Bowl winning team last season, and was expected to be a big part of the Browns' D in 2018.

Kendricks has even been featured on HBO's 'Hard Knocks' this season -- and this should be a very interesting storyline ... if they decide to make his new legal situation a part of the show.
The Cleveland Browns release linebacker Mychal Kendricks following charges of insider trading.