The Cleveland Browns released linebacker Mychal Kendricks Wednesday night, hours after he was charged with insider trading.
Earlier Wednesday, Kendricks and television writer Damilare Sonoiki were charged with one count of securities fraud and one count of committing securities fraud, U.S. Attorney William M. McSwain said.
Browns general manager John Dorsey released a statement on Kendricks following the termination of his contract.
“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.
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“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.”
The former Hoover High standout allegedly made nearly $1.2 million in profits from the investments four years ago. He could face “substantial prison time” if convicted, according to ESPN.
Kendricks signed a one-year deal with the Browns in June after getting released by the Super Bowl champions Philadelphia Eagles in May.