Authorities on Thursday charged a former chairman of Dean Foods Co and a professional Las Vegas gambler with engaging in a years-long insider trading scheme, which included a tip that benefited professional golfer Phil Mickelson.
Advertisement
In a separate indictment Thursday, the U.S. Attorney’s office in Manhattan, in conjunction with the SEC and the Federal Bureau of Investigation, alleged that Walters’ interaction with former chairman of Dean Foods Thomas Davis allowed him to profit $32 million in stock trading while avoiding losses of $11 million.
Mickelson, who has won three Masters golf titles, was not criminally charged, but was named as a relief defendant in a civil lawsuit by the U.S. Securities and Exchange Commission, which said he also traded in Dean Foods stock.
The charge against Mickelson involves a July 2012 conversation he had with Walters.
According to indictments, when the Walters and Davis would discuss Dean Foods, they would refer to the company as “Dallas Cowboys”.
Mickelson allegedly bought $2.4 million worth of the stock the next day, dwarfing his total stock holdings of $250,000.
The stock in question rose 40 percent approximately one week later on the heels of strong second-quarter earnings, allowing Mickelson to make $931,000 in profit. Mickelson’s talent agency declined to comment and his lawyer didn’t immediately respond to requests for comment.
Advertisement
The case represents the latest of dozens of insider trading prosecutions in which Manhattan U.S. Attorney Preet Bharara’s office has targeted suspected Wall Street financial wrongdoing.
