>> Brazen insider trading continues to be a blot on our securities markets. And so, the integrity of our markets continues to be a priority for this office.>> U.S. attorney, Preet Bharara, announcing an insider trading scandal involving championship golfer Phil Mickelson, high rolling sports gambler William Walters, and the former chairman of Dean Foods, Thomas Davis.
Charges filed Thursday, accused the corporate executive of illegally providing inside information that eventually made its way to the sports star. Reuters legal affairs correspondent, Nate Raymond, was at the courthouse.>> The SCC says, that, Walters tipped Mickelson to some positive news about Dean Foods, which allowed Mickelson to make nearly a million dollars.
The SEC says that that was done because Mickelson owed a gambling debt to Walters and was seeking to repay it.>> Mickelson was not criminally charged because of recently stiffened insider trading rules. But this case is still a major one for the government to pursue.>> Walters is a prominent sports gambler, was the subject of a 60 Minutes profile.
Mickelson, obviously, is a sports star. On the face of it, as an insider trading case, it is also a very large case. Walters is alleged to have made over $40 million. According to the FBI, the profits that Walters made would be among the largest ever earned by an insider trading defendant who was not actually working in the securities industry.
>> For his part, Mickelson only made a million dollars off the trade, and has agreed to turn over those ill-gotten gains.