Former Eagles Player Indicted For Insider Trading: Feds

PHILADELPHIA – A former Philadelphia Eagles player has been charged with giving cash bribes, Eagles tickets, and helping make celebrity connections to a stock analyst in an insider trading scheme, according to federal officials.

Mychal Kendricks, 27, a former linebacker with the Eagles who now plays for the Cleveland Browns, is accused of giving kickbacks to, Damilare Sonoiki, a former Goldman Sachs analyst, who provided him with stock information, which Kendricks allegedly used for his financial gain.

U.S. Attorney William M. McSwain said Wednesday the insider trading scheme resulted in Kendricks making $1.2 million between July 2014 to about March 2015.

Sonoiki is accused of providing non-public information to Kendricks about upcoming mergers involving four investment bank clients of the global investment bank, authorities said.

Kendricks then made investments into the companies and when the mergers went through, Kendricks' returns were extremely lucrative, according to federal officials.

He then sold his shares for a profit, authorities allege.

Kendricks issued a statement Wednesday, apologizing for his actions.

"I apologize. Four years ago, I participated in insider trading, and I deeply regret it," the statement reads. "I invested money with a former friend of mine who I thought I could trust and who I greatly admired."

Sonoiki, now TV writer on the popular ABC show "Black-ish," was also indicted in the scheme, officials said.

Philly.com reports he is expected to plead guilty to the charges.

Below is Kendricks' full statement:

"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."

"When individuals engage in insider trading – buying and selling securities based on material, non-public information – it undermines faith in our financial markets and harms ordinary investors who do play by the rules," McSwain said. "As alleged, Mr. Sonoiki and Mr. Kendricks cheated the market, cheated other investors, and placed themselves above the law. My Office will continue to work with our law enforcement partners to maintain the integrity of the financial markets, which is one of our top priorities."

If convicted, Kendricks and Sonoiki face a maximum possible sentence of 25 years’ imprisonment, a three-year period of supervised release, $5,250,000 fine, and a $200 special assessment. Forfeiture of all proceeds from the offenses also may be ordered.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David J. Ignall. The U.S. Attorney’s Office also would like to thank the Securities and Exchange Commission for their assistance in this matter.

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