Professional golfer Phil Mickelson must repay almost $1 million but will not face criminal charges in connection with a Securities and Exchange Commission complaint that he used stock tips passed on from a sports gambler involved in insider trading.
On Facebook, many comments reflected anger that Mickelson isn’t facing the same justice meted out to Martha Stewart — including five months in prison.
“Classic white male privilege,” said Samantha Brazi. “White male makes a million dollars from insider trading and isnt even charged so long as he returns the money. When have women (Martha Stewart) or any black male remotely been permitted such an option?”
Judy Blatchford wrote: “Just curious — Phil Mickelson not criminally charged for making over $1 million on insider trading but Martha Stewart lands in jail over allegedly making $45,000 off insider trading. What’s wrong with this picture?”
Morris Browne wrote: “And yet, the housing and mortgage banksters that led to the step breakdown of the economy, are free range roaming, looking for the next disaster to profit from.”
Sharron Joyce opined: “These people like the Martha Stewards and Phil Mickelsons of the world try to show a clean image, yet when it comes to Investing — Losing Money for them doesn’t seem to be an option!”
Ari Levine said: “Someone needs to explain this to me. Phil pays back the $931K he made from an inside tip and walks away basically unscathed. Martha Stewart benefited about $45K (1/20th of what Phil made) from insider trading and she went to jail! I bet Martha wishes she used Phil’s lawyer, LOL.”
And Michael S. Elliott wrote: “Phil joins Martha as poster examples of why it is naughty, naughty, naughty to use inside information in order to profit in the markets. The SEC will prosecute…unless…you are Goldman Sachs, Chase Manhattan, a Congressman or woman, or a member of the ‘elite’ and ‘protected’ crowd. Corruption is right out in the open in this country…no different than some third world African nation. Pretty sad.”
Mickelson, 45, was allegedly urged by gambler William “Billy” Walters of Henderson, Nevada, to whom he owed money, to buy stock in Dallas-based Dean Foods Co. in July 2012. The Rancho Santa Fe-based golf pro traded the stock at Walters’ insistence after the stocks rose 40 percent a week later and made about $931,000, according to the SEC.
“On one occasion, at a time when Walters was in possession of material nonpublic information regarding Dean Foods, Walters communicated with Mickelson, with whom he was friends, and urged Mickelson to trade in Dean Foods stock,” the SEC complaint stated.
Mickelson repaid Walters in September 2012, partially using the proceeds of the sale.
From 2008 to 2012, Waters received “highly-confidential information” about the business from former Dean Foods director Thomas Davis, who also owed him money. It included “sneak previews of at least six of the company’s quarterly earnings announcements and advance notice of the spin-off of Dean Foods’s profitable subsidiary, The WhiteWave Foods Company,” according to the complaint.
They used prepaid cell phones and used the “Dallas Cowboys” as a code for Dean Foods, according to the SEC.
Mickelson was named a “relief defendant” in the case, meaning he will not face criminal charges. The SEC document stated Mickelson and two other relief defendants had “been unjustly enriched and must disgorge the amount of their ill-gotten gains.”
He has agreed to return the money, according to news reports.
— City News Service contributed to this report.
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