The scheme is tied to investments he made from several years ago, authorities said. Kendricks' attorney has said the football player plans to plead guilty.
The U.S. Securities and Exchange Commission defines it as buying or selling a security — or tipping others off about it — based on information about the security that's not yet public. Here are some general examples of illegal insider trading, according to the commission:
- Corporate officers, directors and employees who trade the corporation's securities after learning of significant, confidential corporate developments
- Friends, business associates, family members and other "tippees" of such people, who trade the securities after receiving such information
- Other persons who misappropriate and take advantage of confidential information from their employers, family, friends and others
A federal complaint says TV writer Damilare Sonoiki tipped off Kendricks about at least four corporate acquisitions that a "large investment bank" was advising, before the deals were announced to the public.