Posted on 05/19/2016 5:44:38 PM PDT by george76
Late in July 2012, Phil Mickelson, one of the world's most famous golfers, received a phone call from a well-known professional sports gambler, William "Billy" Walters.
At the time, U.S. authorities say, Mickelson owed Walters a gambling debt, and Walters had a hot stock tip: buy shares in the food company Dean Foods Co.
Four days later, Mickelson owned $2.4 million worth of Dean Foods shares, according to the U.S. Securities and Exchange Commission. A few weeks after that, he reaped a $931,000 profit when the company announced a spinoff that sent its share price soaring. Mickelson then paid off his debt to Walters.
On Thursday, U.S. authorities said Mickelson agreed to turn over more than $1 million in profits and interest as part of an insider trading case brought against Walters and the former CEO of Dean Foods, Thomas Davis.
"Simply put, Mickelson made money that wasn't his to make," Andrew Ceresney, the SEC's enforcement chief,
...
It is unclear whether Mickelson benefited from an appellate court ruling in 2014 that limited the ability of authorities to bring insider trading charges against individuals who get inside information second- or third-hand, rather than directly from a corporate insider.
...
The SEC said Mickelson had placed bets with Walters both before and after July 2012, when the gambler called Mickelson with his Dean Foods tip.
Walters and Davis, the former Dean Foods CEO, engaged in a years-long scheme to trade in the food company's stock ahead of major corporate announcements, according to federal authorities. Davis already has pleaded guilty.
The $2.4 million position that Mickelson took in Dean Foods using three brokerage accounts dwarfed his other investment holdings in those accounts, which together amounted to less than $250,000, the SEC said.
(Excerpt) Read more at reuters.com ...
In 2014 attorney Gregory Craig defended Mickelson when he was accused of insider trading of Clorox stock in an entanglement that also included Walters .
Meet Greg Craig, Obama's White House Counsel .. and Gregory Craig, a well-known Washington lawyer who quarterbacked President Bill Clinton's impeachment defense..
http://www.weeklystandard.com/meet-greg-craig-obamas-white-house-counsel/article/26948
Does he still play golf or has he been ejected?
He still plays. There is no evidence he knew it was “insider trading”. So it may not be technically illegal. However he’s not off scott free. He was less than candid under questioning and therefore may be in trouble on that count (depending on how the feds want to play it).
I really like Mickelson and love to watch him play. He seems like such a nice guy, has a great family, was second fiddle to Tiger Woods for so long.
It had been rumored that he was a pretty involved gambler, but not ruinously so. It would be so sad if he got busted for this, or if it was worse upon investigation. I hope this is a wake-up call for him. I’m hoping he has some more deep runs in the majors in him.
Tim Finchem quickly fired PGA of America President Ted Bishop .
However, Tim Finchem ( worked for Jimmy Carter ) and pals make too much money from Phil to fire Phil.
Like Martha Stewart?
Didn’t he also complain about taxes a while back and threatened to move to another state (from California?)? Can’t recall the details but do remember something coming up.
I don’t blame anybody for fleeing a high tax state.
Never quite figured out how you can be in trouble for ‘insider trading’ when you weren’t ‘inside.’
Example, you overhear two guys talking in an elevator about a big stock split next week, and you buy a lot of that stock.
Is that insider trading?
Your stock broker recommends a stock and you buy or sell a lot of that stock.
Is that insider trading? This one is what started Martha Stewart’s problems.
A company guy tells another guy, who tells another guy, who tells another guy, who tells you.
Is that insider training?
So?
There is a certain criteria that has to be met for insider trading. Casual overhearing somebody in an elevator wouldn’t meet it. But the best way to insider trade and get away with it is to be elected to Congress. They are exempt from insider trading and some become wealthy off of it.
But the feds just can't seem to find anything that Hillary has done wrong...
News flash: EVERYTHING is against the law. So, if they want to pinch you on something, they can - and they will.
The charade annoys me to no end.
Phil and Thomas Davis each owed Walters large money ( millions each ? ) .
Walters “urged Mickelson to trade in Dean Foods stock, which Mickelson did the next trading day in three brokerage accounts he controlled.” [ Trying to hide the trades with three different accounts ? ]
Mickelson purchased, partially on margin, a total of 200,240 Dean Foods shares between July 30-31, totaling $US 2.4 million .
“This position dwarfed the other holdings in the brokerage accounts, which collectively were valued at less than $US 250,000 “ Alexander M. Vasilescu, a lawyer for the SEC, wrote. “Mickelson had not been a frequent trader and these were his first ever Dean Foods purchases.”
What else did Phil do to pay his gambling debts ? It’s a fair question.
Well, he makes a shipload in prize money and probably much more in endorsements.
Although he is putting those endorsements at risk.
George,
Mr. Finchem had no say in the matter. The PGA of America is a separate association, and Mr. Bishop was not fired. He was simply removed of his volunteer duties as an officer by the Board of Directors.
The answer isn't pretty. LOL.
Phil does have something of a bully pulpit. Causes me to wonder if the charges are really true since I believe he denied having an insider tip and perhaps it was just payback time because of his criticizing the high rates.
Ted Bishop, president of the PGA of America, has reportedly been “relieved of his duties,” according to Golf Channel’s Jason Sobel. Bishop had two options, Sobel reported: resign or be removed. The PGA chose to remove him.
http://bleacherreport.com/articles/2243847-pga-of-america-president-ted-bishop-relieved-of-duties
He’s a pro sports guy. He makes his money off of entertainment.
Who cares if he gets caught breaking the law. He pays a fine or goes to jail.
HE DOESN’T MAKE ANYTHING!
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