Many readers of this blog know of the golfer Phil Mickelson, who won five big golf championships and has numerous endorsement deals. The golfer was recently accused of insider trading, in a scandal that involved ex-investment banker Thomas Walters and Las Vegas sports bettor Will Walters.
Federal officials have accused the three men of engaging in an insider trading scheme. They have charged Walters with using insider tips provided by Davis in order to make approximately $40 million in ill-gotten investment gains. Davis has pleaded guilty in the proceedings and is currently cooperating with authorities against Walters.
Mickelson has not been charged with wrongdoing in the case. However, the Securities and Exchange Commission has alleged that he was unjustly enriched as a result of the insider trading. The SEC obtained Mickelson's agreement to disgorge $1 million wroth of "ill-gotten gains" he earned due to trades that Walters recommended to him. An attorney representing Mickelson says that the golfer takes responsibility for the fact that his associations and decisions resulted in his association with the instant investigation.
According to federal investigators, Davis became ensnared in the scandal because of his many debts. He was experiencing financial problems and had misused charity money. The federal investigation focused heavily on Davis' debts. Among his creditors were Walters, who had loaned Davis money. In return, Davis provided Walters with insider information related to Dean Foods, which allegedly helped Walters in his investment dealings.
Whenever a New York City resident is accused of insider trading, it is vital that the individual prepare a criminal defense against the charges. Indeed, the consequences of conviction could include jail time, so those accused of the crime will want to defend themselves the most intelligent way possible.
Source: The New York Times, "Insider Trading Case Links Golfer, Banker and Gambler," Matthew Goldstein, Ben Protess and Alexandra Stevenson, May 19, 2016