Lucky Phil Mickelson Fined: SEC orders Phil Mickelson to pay back 1 million earned through insider trading

SEC lawsuit in Federal Court states that Professional golfer Phil Mickelson has to pay back almost $1 million he made from an insider trading tip.

SEC complaint filed in Manhattan Federal Court that Phil Mickelson received the tip from a professional sports better Billy Walters, who provided non-public information on Dean Foods of which he bought said stock, yielding $931,000 in profits. Mickelson then used some of those gains to repay a gambling debt he owed the bettor.

The Securities and Exchange Commission acknowledge that Mickelson is not personally accused of any criminal wrongdoing, but it is seeking return of ‘all ill-gotten gains in the form of illicit trading profits.’

billy-walters

William T Walters

Documents detail a scheme in which  Walters gleaned “highly-confidential information” from the board chairman of Dean Foods, Thomas Davis, between 2008 and 2012.

That information included “sneak previews of at least six of the company’s quarterly earnings announcements and advance notice of the spin-off of Dean Foods’s profitable subsidiary,”.

The papers charge that in 2012, Walters passed inside information on Dean Foods to Mickelson, who then bought $2.4 million in the company’s stock.

Dean Foods is a Fortune 500 company that’s “the largest processor and distributor of fresh milk in the United States,” according to  Manhattan U.S. Attorney Preet Bharara’s office.

Walters, 69, made a profit of more than $40 million because of this information.

“Mickelson made money that wasn’t his to make,”  – Andrew Ceresney, the SEC Division of Enforcement director. Mickelson is not charged with criminal charged but has been asked to return monies made in the illegal deal

In return for the tip, Walters gave Davis two loans of around $1 million in total that the onetime he didn’t pay back, as well as money for joint business ventures, federal prosecutors allege.

The papers charge that in 2012, Walters passed inside information on Dean Foods to Mickelson, who then bought $2.4 million in the company’s stock.

Documents state that Mickelson felt obliged to buy the stock  because he owed Walters gambling money.

Davis, 67, copped to insider trading charges on Monday.

Walters faces charges of conspiracy, securities fraud, and wire fraud

 

 

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