GOLFER Phil Mickelson to pay SEC for profit he made on inside stock tip

by Chris Isidore and Ahiza Garcia   @CNNMoney May 19, 2016: 11:47 AM ET

Phil Mickelson

Two other individuals allegedly involved in the insider trading case with Mickelson are Las Vegas investor and gambler Billy Walters and Thomas Davis, the former chairman of Dean Foods. Walters and Davis were named in federal criminal indictments unsealed Thursday.

Mickelson was named as a "relief defendant" in the case, meaning he benefited from wrongdoing but is not accused of any illegal act.

"The complaint does not assert that Phil Mickelson violated the securities laws in any way. On that point, Phil feels vindicated," said the statement released by his attorney, former White House counsel Gregory Craig. "At the same time, however, Phil has no desire to benefit from any transaction that the SEC sees as questionable."

The SEC complaint cites a July 2012 conversation he had with Walters. According to the SEC, Mickelson and Walters were friends, and the golfer owed the gambler for bets.

Walters had insider information from Davis about an upcoming spin-off Dean Food (DF)was planning, and Walters advised Mickelson to buy its stock, according to the complaint.

Related: Five famous insider trading cases

Mickelson allegedly bought $2.4 million worth of the stock the next day, dwarfing his total stock holdings of $250,000. When the stock rose in price, Mickelson was able to sell it at a $931,000 profit and pay off his bets with the proceeds of the trade, according to the SEC. In his statement, Mickelson said his sponsors have decided to stand by him.

Phil Mickelson

"Phil understands and deeply respects the high professional and ethical standards that the companies he represents expect of Phil. He regrets any appearance that, on this occasion, he fell short," said his statement. "He takes full responsibility for the decisions and associations that led him to becoming part of this investigation." more