Phil Mickelson
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Top pro golfer Phil Mickelson was charged with insider trading today (May 19) in a Securities and Exchange Commission complaint that will be tried in federal court in the Southern District of New York.

The primary defendants in the case are William T. (Billy) Walters, a Las Vegas–based professional sports gambler and friend of Mickelson; and Thomas C. Davis, a director of Dean Foods.

Mickelson and two others are named as relief defendants, or someone who has received ill-gotten funds as a result of illegal acts committed by other named defendants.

Mickelson, reportedly an inveterate gambler on the course, has been linked to insider trading in Dean Foods for some time. In 2014, the New York Times reported that Mickelson was under investigation for insider trading in Clorox stock. When that proved to be untrue, the Times recanted its story but reported that Mickelson and Walters were under investigation for trades in Dean Foods.

According to the SEC's complaint, Walters on several occasions provided Davis with funds of almost $2 million.

The complaint states that in July of 2012, Walters called Mickelson, who had previously placed bets with Walters. Mickelson allegedly owed Walters money at the time. Walters is said to have told Mickelson to buy Dean stock. About a week later, Dean stock zoomed 40 percent, giving Mickelson a profit of $931,000, according to the complaint. Mickelson allegedly repaid Walters partly from the money he made on the Dean trade.

From 2008 to 2012, Davis allegedly gave Walters inside information on Dean. This time, the tip was based on Dean Foods preparing to spin off a profitable operation.

The complaint says Mickelson is a resident of Rancho Santa Fe. In the past, Mickelson has threatened to leave California because of its high taxes; he also put the Rancho Santa Fe home up for sale. Apparently, he did not follow through on either of these actions.

At times in the past, Walters's purchases of Dean stock ranged from 29 to 37 percent of average daily volume in the stock. According to the complaint, Walters bought or sold Dean stock several times after getting tips from Davis.

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Comments

MURPHYJUNK May 20, 2016 @ 7:19 a.m.

but they did not prove he lied about anything when questioned.

thats what they got Martha on.

( the feds don't have to give you your rights before being questioned)

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Ponzi May 19, 2016 @ 8:28 p.m.

Martha went to prison. What keeps this chronic insider trader from being indicted?

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Don Bauder May 19, 2016 @ 8:56 p.m.

MichaelValentine: I have several questions, but two in particular: why is Mickelson a close friend of professional gambler Billy Walters, and why does Mickelson owe Walters money? It seems to me Mickelson makes something like $45 million a year. Best, Don Bauder

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Don Bauder May 19, 2016 @ 8:59 p.m.

Ponzi: From what we know, I don't think that Mickelson can even be called an inside trader, much less a chronic inside trader. At this point, the SEC charged him only with being a relief defendant. Like you, I suspect there is more, but we have to go with what is on the table. Best, Don Bauder

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SportsFan0000 May 20, 2016 @ 1:07 a.m.

Mickelson purchased another home in Rancho Sante Fe (Home #2). Mickelson was left trying to sell the other RSF home (home #1) that he had moved out of to move into his new RSF home(Home #2). Nickelson's RSF home #1 languished on the market for awhile after the market crash. He finally sold it a last year or the year before (2014 or 2015). Mickelson still lives in RSF home #2.

Texas has very harsh weather and extremes that many who, like Mickelson, who have lived in California a long time probably would not like.

Unless they are vying for bankruptcy. In that case, Texas is very favorable to executives and people who want to buy multi million dollar estates that may be exempt from their bankruptcy cases under Texas homestead laws. Check with your Texas Attorney on that..

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Don Bauder May 20, 2016 @ 5:27 a.m.

SportsFan0000: Florida is another state providing asset protection. Best, Don Bauder

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Don Bauder May 20, 2016 @ 11:35 a.m.

Murphyjunk: I haven't seen any mention of Mickelson lying to federal investigators. Best, Don Bauder

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MURPHYJUNK May 20, 2016 @ 1:15 p.m.

if he had lied, they really could have nailed him.

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Don Bauder May 21, 2016 @ 6:01 a.m.

Murphyjunk: Yes, if the government really wanted to nail him. Does it? Best, Don Bauder

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Don Bauder May 20, 2016 @ 11:36 a.m.

Mike Murphy: I am not aware of Mickelson touting dangerous drugs. What did he tout, and when? Best, Don Bauder

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ImJustABill May 20, 2016 @ 3:47 p.m.

I seem to remember him being in a lot of TV ads for some dubious-sounding pain killer but I can't remember the details.

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ImJustABill May 20, 2016 @ 3:58 p.m.

I looked it up - he was in commericals for some kind of arthritis med called enbrel.

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Don Bauder May 20, 2016 @ 8:28 p.m.

ImJustABill: But is it dangerous?Best, Don Bauder

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Don Bauder May 20, 2016 @ 8:27 p.m.

ImJustABill: Like Roger Hedgecock pushing Metabolife? Best, Don Bauder

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ImJustABill May 21, 2016 @ 2:57 a.m.

I think a lot of the radio hosts will pretty much push anything they're paid to push. I can't say KOGO hosts have had a great track record in terms of promoting reputable products.

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Don Bauder May 21, 2016 @ 6:03 a.m.

ImJustABill: You have it right. Radio hosts will plug anything for money. Best, Don Bauder

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Ponzi May 22, 2016 @ 7:40 p.m.

Ted Leitner was a big promoter of Metabolife.

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Don Bauder May 22, 2016 @ 7:56 p.m.

Ponzi: Yes, both Leitner and Hedgecock pugged it, as I recall. Best, Don Bauder

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Don Bauder May 20, 2016 @ 8:29 p.m.

Murphyjunk: Tell us more. I have never heard of the stuff. Best, Don Bauder

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MURPHYJUNK May 21, 2016 @ 7:31 a.m.

google it with danger in the search terms

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Don Bauder May 21, 2016 @ 11:16 a.m.

Murphyjunk: Sounds interesting. Best, Don Bauder

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