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Gambling debt, stock tip lead to $1 million settlement but no charges for Mickelson
Reuters ^ | May 19, 2016 | Joseph Ax

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 ...


TOPICS: Crime/Corruption; US: California; US: Florida; US: Nevada; US: New York
KEYWORDS: davis; deanfoods; gregorycraig; insidertrading; mickelson; sec; walters
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The SEC believes both men [ former Dean Foods chairman Thomas Davis ] owed Walters money related to sports gambling.

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

1 posted on 05/19/2016 5:44:38 PM PDT by george76
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To: george76

Does he still play golf or has he been ejected?


2 posted on 05/19/2016 6:02:03 PM PDT by US_MilitaryRules (The last suit you wear has no pockets!)
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To: US_MilitaryRules

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).


3 posted on 05/19/2016 6:10:57 PM PDT by BipolarBob (I'm so open minded that you should only think like me.)
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To: BipolarBob

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.


4 posted on 05/19/2016 6:17:41 PM PDT by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart and lean not on your own understanding")
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To: US_MilitaryRules

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.


5 posted on 05/19/2016 6:20:11 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: BipolarBob

Like Martha Stewart?


6 posted on 05/19/2016 6:29:55 PM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: BipolarBob

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.


7 posted on 05/19/2016 6:32:03 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Georgia Girl 2

https://en.wikipedia.org/wiki/ImClone_stock_trading_case


8 posted on 05/19/2016 6:34:08 PM PDT by BipolarBob (I'm so open minded that you should only think like me.)
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To: Grams A

I don’t blame anybody for fleeing a high tax state.


9 posted on 05/19/2016 6:34:53 PM PDT by BipolarBob (I'm so open minded that you should only think like me.)
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To: george76

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?


10 posted on 05/19/2016 6:37:20 PM PDT by chaosagent (Remember, no matter how you slice it, forbidden fruit still tastes the sweetest!)
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To: chaosagent

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.


11 posted on 05/19/2016 6:40:03 PM PDT by BipolarBob (I'm so open minded that you should only think like me.)
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To: BipolarBob
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).

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.

12 posted on 05/19/2016 6:56:26 PM PDT by kiryandil (To the GOPee: "Giving the Democrats the Supreme Court means you ARE the Democrats.")
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To: chaosagent

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.”

http://www.smh.com.au/sport/golf/golfer-phil-mickelson-named-in-federal-lawsuit-involving-insider-trading-20160519-gozfft.html


13 posted on 05/19/2016 6:56:59 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Eccl 10:2

What else did Phil do to pay his gambling debts ? It’s a fair question.


14 posted on 05/19/2016 7:08:27 PM PDT by sunrise_sunset
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To: sunrise_sunset

Well, he makes a shipload in prize money and probably much more in endorsements.

Although he is putting those endorsements at risk.


15 posted on 05/19/2016 7:22:12 PM PDT by Eccl 10:2 (Prov 3:5 --- "Trust in the Lord with all your heart and lean not on your own understanding")
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To: george76

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.


16 posted on 05/19/2016 8:08:35 PM PDT by Mpatl
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To: sunrise_sunset
What else did Phil do to pay his gambling debts ? It’s a fair question.

The answer isn't pretty. LOL.


17 posted on 05/19/2016 8:11:15 PM PDT by Alberta's Child ("Sometimes I feel like I've been tied to the whipping post.")
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To: BipolarBob

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.


18 posted on 05/19/2016 8:12:32 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Mpatl

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


19 posted on 05/19/2016 8:35:50 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

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!


20 posted on 05/19/2016 11:35:17 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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