Insider Trading Investigation Has Reportedly Be Ongoing For Years

According to the New York Times (link below), federal investigators are currently investigating whether Carl Icahn, golfer Phil Mickelson and legendary sports bettor William "Billy" Walters may have violated insider trading laws.

The FBI and SEC are reportedly investigating Mickelson and Walters and their trades in Clorox and Dean Foods. According to reports, Mickelson and Walters both placed trades in Clorox shortly before Carl Icahn announced a multi-billion dollar takeover bid for the company in 2011. Federal investigators were investigating suspicious activity in Clorox prior to the bid and eventually cast their eyes on Mickelson and Walters.

Did Walters speak to Icahn about the Clorox bid and pass the information on to Mickelson? This is one of the theories that the SEC and FBI are investigating. Walters and Icahn reportedly know each other, as do Mickelson and Walters.

Another important point - if Icahn did, in fact, share information about the pending Clorox bid with Billy Walters, would this actually be classified as insider trading?

As mentioned, investigators are also looking into Walters' and Mickelson's trading in Dean Foods in the summer of 2012. According to the New York Times, the FBI and SEC are looking into whether Walters may have had an insider at the company who fed him information.

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The investigation is serious enough that FBI agents intercepted Mickelson at an airport to ask him about the trades. Mickelson referred the agents to his attorney.

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I would imagine that there will be much more on this story in the coming weeks..

Source: NYTimes.com - Insider Trading Inquiry Includes Mickelson and Icahn

Filed under: General Knowledge