U.S. authorities on Thursday charged a former chairman of Dean Foods and a professional Las Vegas gambler with engaging in a years-long insider trading scheme, which included a tip that benefited professional golfer Phil Mickelson. Bobbi Rebell reports.
Criminal charges filed against the former chairman of Dean Foods, along with professional gambler Billy Walters for insider trading. The two are accused of a years-long trading scheme which even included a tip that benefited pro golfer Phil Mickelson. U.S. Attorney for the Southern District of New York Preet Bharara: (SOUNDBITE) U.S. ATTORNEY FOR SOUTHERN DISTRICT OF NEW YORK PREET BHARARA SAYING: "For over five years Davis repeatedly and systematically fed material non-public information about Dean Foods to Walters, who in turn benefitted handsomely to the tune of about $43 million (USD) in profits made and in losses avoided from his trading in Dean Foods stock." Authorities say Davis disclosed information to Walters about Dean Foods' financial outlook, earnings and its spin-off of WhiteWaves Food. The deal sent the company's shares soaring. Davis has pled guilty. Mickelson was not charged but was named a relief defendent in a civil lawsuit by the SEC- meaning he was not accused of wrongdoing, but he allegedly gained from others' illegal acts. Reuters' Nate Raymond SOUNDBITE: NATE RAYMOND, LEGAL AFFAIRS CORRESPONDENT, THOMSON REUTERS (ENGLISH) SAYING: "The SEC says Walters tipped Mickelson to some positive news about Dean Foods which allowed Mickelson to make nearly a million dollars. The SEC says that was done because Mickelson owed a gambling debt to Walters and was seeking to repay it." Mickelson says he has agreed to return the money.