Partner Robert Long commented to Vox on the criminal and civil charges filed Wednesday against NFL linebacker Mychal Kendricks, formerly of the Philadelphia Eagles and most recently with the Cleveland Browns, and Damilare Sonoiki, a former writer for the TV comedy Black-ish and one-time investment banking analyst.The Securities and Exchange Commission (SEC) and U.S. Attorney’s Office for the Eastern District of Pennsylvania have charged the duo with insider trading stemming from a deal that allegedly involved trading stock tips for NFL tickets, cash, and premium entertainment access. The complaint alleges that illegal profits of $1.2 million were generated through the scheme.
In explaining the potential ramifications, Long noted that the SEC’s sanctions on the civil side, if any, could include repayment of the $1.2 million in alleged ill-gotten gains plus additional penalties of up to three times that amount. On the criminal side, if they’re convicted, each defendant faces a maximum possible sentence of 25 years in prison and a more than $5 million fine, according to the U.S. Attorney’s Office.
Long, a former federal prosecutor and senior SEC attorney, offered the following:
“Ultimately, any kind of sentence is likely to be influenced by the federal sentencing guidelines, which are going to take into consideration gains, victims, any acceptance of responsibility, and whether there is an abuse of trust, among other things,”
As Kendrick has issued an apology and is cooperating with the investigation, the reporter posits that he may be looking for a plea deal.
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