The sports bettor who gave golfer Phil Mickelson insider stock information was found guilty in federal court on Friday.
Billy Walters, 70, was found guilty on all 10 charges in New York, a verdict announced in the second day of deliberations.
“Today, Billy Walters lost his bet that he could cheat the securities markets on a massive scale and get away with it scot-free,” acting U.S. Attorney for the Southern District of New York Joon H. Kim said in a statement. “As a unanimous jury swiftly found, Walters received inside information about Dean Foods for years – directly from one of its board members – and illegally traded on it, netting over $43 million.”
Walters urged Mickelson, who was not charged as part of the scheme, to purchase stock in Dean Foods in July 2012, and Mickelson did so the next day. Mickelson had owed Walters money over an outstanding debt.
According to court documents, Mickelson used three brokerage accounts to purchase 200,240 shares (totaling $2.4 million) in Dean Foods stock between July 30-31 of that year. Shares in Dean Foods soared 40% a week later when a spin-off was announced, and Mickelson used the $931,738 profit to pay off his debt to Walters.
In an agreement with the Security and Exchange Commission, Mickelson agreed to repay the trading profits.