Phil Mickelson Shoots Even Par In Insider Trading Case

According to the SEC Press Release from May 19, 2016, notorious sports gambler Billy Walters received illegal insider information from Thomas Davis – who was then a prominent board member of Deans Foods – on a recurring basis, from 2008 through 2012. The stock tips allegedly came as the result of a debt that Davis owed to Walters at the time. Based on the information that was illegally proved to Walters, he was able to earn about $40 million over the five-year span. Mickelson played a much smaller role in the matter. Back in July 2012, he allegedly owed Walters an undisclosed amount of money, and sought a way to repay the debt. Walters, who was in possession of insider trading information, instructed Mickelson to purchase stock in Deans Foods. Mickelson took the tip, purchasing $2.4 Million worth of stock in the company. About a week later, after the share price had jumped by 40%, Mickelson sold his shares for a $931,738 profit, which he used in part to repay his debt to Walters. Though Mickelson has not been charged with criminal activity and does not face any possible jail time, he has agreed to pay back the $931,738 plus interest for a total of $1,037,029.81, a mere slap on the wrist for the prominent golfer. Mickelson’s attorney claims that Mickelson did not do anything wrong, but was merely an “innocent bystander.” It seems suspicious, though, just how quickly someone guilty of no wrongdoing was willing to fork over a check with six zeros. The longtime golf icon apparently will not lose any of his endorsement deals over this issue, as he is not charged with criminal activity. The PGA Tour will investigate the situation to see if further disciplinary action should take place, but has not commented yet on its findings.