Golf's Major Championships

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Golfer Phil Mickelson charged with insider trading by the SEC

MARKETWATCH 10:07 AM ET 5/19/2016
Symbol Last Price Change
DF 17.76down +0.03 (+0.17%)
QUOTES AS OF 10:07:29 AM ET 05/19/2016

Golfer Phil Mickelson on Thursday was charged with insider trading in connection with a case where two others are facing criminal charges.

Mickelson was charged with insider trading by the Securities and Exchange Commission (https://www.sec.gov/litigation/ complaints/2016/comp-pr2016-92.pdf) due to an alleged tip he received from gambler William "Billy" Walters, who got information from a former Dean Foods (DF) chairman, Thomas Davis.

The SEC said that Walters called and then sent text messages to Mickelson, who ultimately bought a $2.4 million position in three accounts he controlled. Those securities "dwarfed" Mickelson's other holdings, which were collectively valued at less than $250,000, the SEC said. Mickelson had not been a frequent trader, and these were his first Dean Foods(DF) purchases, the SEC said. Mickelson made a profit of approximately $931,000 from the stock, which he held for about a week.

The reason why Mickelson, who the PGA Tour website says has career earnings of $79.5 million, made these trades? According to the SEC, Mickelson owed Walters money at the time Walters urged him to trade. That's also the case with Davis -- the SEC said he owed Walters money.

The Justice Department has alleged that Davis provided material nonpublic information to Walters, who is also charged in a separate indictment, about Dean Foods(DF) earnings results, its outlook and the spinoff of Whitewave-Alpro (http:// www.marketwatch.com/story/dean-foods-to-spin-off-organics-unit-via-ipo-2012-08-08), a Dean subsidiary.

-Steve Goldstein; 415-439-6400; [e-mail]


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05-19-161007ET
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