GAMBLER PHILLY MICK WILL PAY $1 MILLION SEC FINE
Not my favorite golfer Phil Mickelson has agreed to disgorge his profit and pay a $1 million fine to the SEC for insider trading.
Details from CNN:
Two other individuals allegedly involved in the insider trading case with Mickelson are Las Vegas investor and gambler Billy Walters and Thomas Davis, the former chairman of Dean Foods. Walters and Davis were named in federal criminal indictments unsealed Thursday.
"The complaint does not assert that Phil Mickelson violated the securities laws in any way. On that point, Phil feels vindicated," said the statement released by his attorney, former White House counsel Gregory Craig. "At the same time, however, Phil has no desire to benefit from any transaction that the SEC sees as questionable."
The SEC complaint cites a July 2012 conversation he had with Walters. According to the SEC, Mickelson and Walters were friends, and the golfer owed the gambler for bets.
Walters had insider information from Davis about an upcoming spin-off Dean Food was planning, and Walters advised Mickelson to buy its stock. Mickelson allegedly bought $2.4 million of stock in Dean Foods the next day, dwarfing his total stock holdings of $250,000. When the stock rose in price, Mickelson was able to sell it at a $931,000 profit and pay off his bets with the proceeds of the trade, according to the SEC. His payment to the SEC will reflect that profit, along with $105,00 in interest.