USA authorities on Thursday charged a former chairman of Dean Foods Co and a professional Las Vegas gambler with engaging in an insider trading scheme that netted over $40 million and included a tip that benefited professional golfer Phil Mickelson.
Phil Mickelson paid off a debt to a professional gambler with almost $1 million that was unfairly reaped from an insider trading scheme, according to a federal investigation that led to two arrests but spared the golf great from criminal charges. In 2012, the SEC says, Walters called Mickelson, who owed him money, and urged him to trade stock of the Dallas-based distributor of Land O Lakes butter and other dairy products.
He has not been charged criminally, the SEC says Mickelson benefited from the information and the agency wants him to turn over $931,000 in what it deems illegal profits. He will pay the SEC back the $931,000 he earned in profits off the tip, plus $105,000 in interest.
"Simply put, Mickelson made money that wasn't his to make", said Andrew Ceresney, the SEC's director of enforcement. He has also bragged of winning large sums on Super Bowls and World Series through legal bets placed in Las Vegas. In May 2014, Mickelson confirmed that FBI agents investigating insider trading questioned him as he finished playing a round at the Memorial Tournament in Dublin, Ohio.