SEC: Mickelson Named as "Relief Defendant" In Case

Photo of golfer Phil Mickelson on the golf course.  Big smile on his face.Earlier today, professional golfer Phil Mickelson, with career tournament earnings of over $86 million, agreed to repay the SEC (Securities and Exchange Commission) over $1 million to settle an insider trading case.

Mickelson, who neither admitted nor denied the allegations that had been made in a complaint, agreed to pay $931,738.12 plus interest of $105,291.69 to the SEC.


According to the SEC, Mickelson illegally profited via his relationship with sports gambler William "Billy" Walters. Mickelson reportedly owed Walters a substantial amount of money for unpaid debts. Walters, according to a press release from the SEC, was also owed money by Thomas C. Davis, who was serving as a Dean Foods company board member at the time.

Davis reportedly passed insider information to Walters in order to help pay down his debts. According to the complaint, Walters and Davis communicated via prepaid cell phones. In addition to receiving insider information on Dean Foods, Walters also received information on Darden Restaurants. The SEC alleges that a group of shareholders retained Davis to advise them on their plans to take an activist stake in Darden Restaurants, and Davis passed non-public information onto Walters.

According to the SEC, Walters advised Mickelson in July of 2012 that the professional golfer should take a substantial stake in Dean Foods. The next day, Mickelson purchased millions of dollars worth of Deans Foods' stock through three different brokerage accounts that he controlled. One week later, shares of Dean Foods spiked 40% and Mickelson reaped a profit of $931,000. Mickelson used this money to repay his debt to Walters.

Mickelson was required to pay full disgorgement of this profit ($931,738.12 to be exact), plus an additional $105,291.69 in interest.


While Mickelson will not get into any trouble for his actions, the US Attorney's Office for the Southern District of New York announced criminal charges against both Walters and Davis. It is alleged that Walters made close to $40 million from illegal insider information that was obtained via his relationship with Thomas C. Davis.

Source: - SEC Announces Insider Trading Charges in Case Involving Sports Gambler and Board Member

Photo: Ed Balaun

Filed under: General Market News

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