The Securities and Exchange Commission has obtained a final judgment against National Football League player Mychal Kendricks for insider trading, the SEC announced Monday.
Kendricks previously pleaded guilty to securities fraud and conspiracy to commit securities fraud. He pocketed $1.2 million after receiving insider tips of company mergers from an analyst at a New York City investment bank, the SEC said. He will be sentenced at a future date on the criminal charges.
The judgment against Kendricks, a former linebacker for the Philadelphia Eagles and Seattle Seahawks who's currently a free agent, was entered in U.S. District Court for the Eastern District of Pennsylvania. The judgment orders him to pay disgorgement of $1,188,075.
Based on the tips he received, Kendricks bought securities in four companies that were about to be acquired by larger firms before the deals were announced to the public, the SEC complaint said. During several months in 2014 and 2015, Kendricks and the investment analyst used coded language in texts and FaceTime—which they thought would not be detected—to exchange information. They avoided using the telephone, according to the complaint.