Golfer Mickelson in the rough over insider trading scheme

Chuck Burton  ASSOCIATED PRESS
Phil Mickelson allegedly made close to a million dollars thanks to a stock tip he shouldn't have received

Professional golfer Phil Mickelson has agreed to forfeit almost $1 million dollars that the Securities And Exchange Commission says he earned in an illegal insider trading scheme.

Mr Walters was arrest on Wednesday in Las Vegas - former Dean Foods chairman Thomas C. Davis pleaded guilty to co-operating with the gambler, who is a longtime friend.

"These bets were no gamble at all", Manhattan US Attorney Preet Bharara said.

Doing so may result in civil and/or criminal penalties. It says that one month later, Mickelson repaid Walters "in part with the proceeds of his trading". Mickelson had placed bets with Walters and owed him.

In 2012, the SEC says, Walters called Mickelson, who owed him money, and urged him to trade stock of the Dallas-based distributor of Land O Lakes butter and other dairy products.

"Simply put, Mickelson made money that wasn't his to make", said Andrew Ceresney. He was ordered to appear in Manhattan federal court on June 1. The magazine has also brought out the information that the lawyers have also said Phil was innocent and he was someway victim of others' wrongdoings. In 2001, Davis retired as a managing partner at a national investment bank and joined the Dean Foods board. Yet, buried in both articles was a reference to a second investigation involving trading in Dean Foods. Davis engaged in the sort of old-fashioned insider trading dance - between a tipper and tippee - that flourished in the 1980s. We didn't think much of potential claims against Mickelson arising out of the Clorox investigation.

The three-time Masters victor wasn't charged with any wrongdoing.

But he said the decision "has had an impact on our investigations", allowing some "nefarious conduct" to go unprosecuted.

The case is before the U.S. District Court for the Southern District of NY. "On that point, Phil feels vindicated", according to the statement, which said the golfer has "no desire to benefit from a transaction the SEC sees as questionable".

Long on the radar of local, state, and federal law enforcement in Nevada, Walters is perhaps best known as a central member of the "Computer Group", a collection of well-sourced bettors and handicappers who beat a federal illegal bookmaking indictment in the early '90s.

From 2008 through 2012, the SEC said, Davis passed Walters highly confidential information on Dean Foods, including sneak previews of at least six of the company's quarterly earnings announcements and advance notice of the spin-off of its profitable subsidiary, WhiteWave Foods Co. The company's shares soared after the deal was announced on August 8, 2012.

The U.S. characterized the relationship between Davis and Walters as an open-and-shut insider trading case: Davis gave Walters tips over several years, and Walters helped Davis pay off debts.

Before this story gets more complicated, let's pause to review: A corporate chieftain confesses to leaking information to a professional sports gambler, who allegedly tipped a famous golfer - and the latter two deny doing anything wrong.

In return for the secret information, Walters gave Davis financial benefits, including approximately $1 million in loans that largely were not repaid, the indictment charged.

Walters called Mickelson on July 27 and they exchanged texts over the next two days.

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