Professional golf Hall-of-Famer Phil Mickelson has been listed among the names associated with a Dean Foods insider trading scandal.
The accusation, which surfaced yesterday, May 19th, is that Mickelson profited from trades resulting in criminal insider trading charges laid against former Dean Foods Chairman, Thomas Davis.
The other man charged in the scandal is William “Billy” Walters, who received a tip from Davis that he passed to Mickelson, according to a MarketWatch report.
The Securities and Exchange Commission (SEC) said that Walters is Mickelson’s bookie, and that the pro golfer allegedly used the tip for profit.
The SEC lists a call and text from Walters to Mickelson, who then bought a $2.4 million position in three accounts he controlled.
As to what motive a professional athlete, winner of several of the PGAs sought-after accolades and continually active player, would have, the SEC poses that Walters urged him to make the trade because he was owed money by the golfer.
According to the report, Mickelson made a profit of approximately $931,000 from the stock, which he held for about a week. He was not a frequent trader and these were his first purchases of Dean Foods.
“Phil understands and deeply respects the high professional and ethical standards that the companies he represents expect of their employees, associates, and of Phil himself. He subscribes to the same values and regrets any appearance that, on this occasion, he fell short. He takes full responsibility for the decisions and associations that led him to becoming part of this investigation,” a Mickelson’s attorney stated on his behalf in a release.
The statement noted that Mickelson’s sponsors are continuing their agreements with him, and that he was “vindicated” because the SEC did not allege that he broke the securities laws.
Because, the golfer said, he has no desire to benefit from any transaction that the SEC sees as questionable, he plans to return any profit made on the investment, which took place in 2012.
In the case of Dean Foods’ former chair, the Justice Department alleges that he, too, owed Walters money and provided him with material nonpublic information regarding the company’s outlook on the spinoff of subsidiary Whitewave-Alpro.
DeliMarket News will continue to report as more information comes to light.
