Matthew Doarnberger
Professional golfer Phil Mickelson was back in the news this summer thanks to a 2014 federal investigation into an insider trading case. It is alleged that Mickelson owed high stakes sports gambler Billy Walters a considerable amount of money in July of 2012. As a result, Walters advised Mickelson to buy stock in Dean Foods Company as a result of an inside tip received by Walters’ longtime friend and top Dean Foods director Thomas C. Davis. The purchase netted Mickelson $931,000 after he sold the stock less than one month after purchase. The Securities and Exchange Commission (SEC) has now ruled that he must return the entire $931,000 plus another $105,000 in interest. Davis and Walters are named as co-defendants in the SEC’s civil suit while Mickelson is named only as a relief defendant. No further legal action will be taken against the golfer commonly referred to as “Lefty.”
Insider trading laws are typically difficult to assess. In this particular case, Davis appears to be the individual who provided the non-public information and Walters appears to be the one who received it. Mickelson is involved as a result of being a third party to the initial infraction having been told information illegally obtained but not actually receiving it from the original source (Davis). This is the reason for the more lenient status in the case for Mickelson and the harsher status for the other two men......To Read More...
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