NFL star Mychal Kendricks has agreed to pay $1.2 million to settle the civil lawsuit accusing him of insider trading.
According to court documents obtained by The Blast, Kendricks has reached a deal with the Securities and Exchange Commission in the civil action they brought against him. The NFL star is still facing criminal charges over his illegal activity.
Per the deal, Kendricks will pay a total of $1,188,075, which is around the amount he profited from insider trading. The order permanently restrains him from violating the Securities Exchange Act of 1934.
The civil matter being settled is one step in the right direction for Kendricks. He is still facing 25 years behind bars in the criminal case. He is scheduled to be sentenced later this month.
Kendricks’ cooperation with investigators will most likely help him during sentencing. He will find out his fate in a couple of weeks.
Back in October 2018, the NFL star was charged with conspiracy to commit securities fraud and one count of securities fraud.
In court documents, prosecutors accused Kendricks of using insider information from a friend who worked as a banker at an investment firm, which allowed him to profit $1.2 million. The NFL star allegedly gave the banker kickbacks including cash, NFL tickets and other luxury perks.
Kendricks was released from the Cleveland Browns immediately after being charged for insider trading.
The NFL star pled guilty to the charges and immediately accepted the responsibility to the court. He quickly sat down with prosecutors and has been hashing out a settlement for over a year. He was facing a maximum sentence of 25 years in prison and a $5.25 million fine plus the forfeiture of the $1.2 million he made in profits.
Kendricks signed a $4 million deal with the Seahawks.