Golfer Phil Mickelson has been accused of insider trading on Thursday, according to Market Watch. Mickelson is connected with two other individuals who are facing criminal charges.
Mickelson allegedly received a tip from gambler William “Billy” Walters, who received his information from a former Dean Foods chairman named Thomas Davis. Davis leaked that Dean Foods would be announcing a profitable subsidiary called The WhiteWaves Food Company.
Many of the details surround Davis and Walters, but the Golf News Net details the SEC’s issue with Mickelson:
The SEC alleges Mickelson was contacted by Walters in July 2012 with the spin-off information, suggesting Mickelson owed Walters a sports-betting-related debt at the time. Walters urged Mickelson to trade Dean Foods, which he did the next day by establishing a $2.4 million position in the stock through three separate brokerage accounts. Mickelson’s other holdings totaled approximately $250,000 — a warning sign to the SEC. A week later, Dean Foods announced the subsidiary, with the stock jumping 40 percent.
According to GNN, the SEC also investigated if Walters received insider information from Carl Icahn about Clorox, but the investigation didn’t bring charges.
You can read the lawsuit below in full:
Phil Mickelson SEC lawsuit by Ryan Ballengee
