Phil Mickelson releases statement about alleged insider trading
The Associated Press reports the US Securities and Exchange Commission filed a complaint Thursday against pro golfer Phil Mickelson for insider trading.
Mickelson, aWorld Golf Hall of Fame member, was named a day earlier on Wednesday as an official ambassador to the Career Builder Challenge in La Quinta beginning in 2017.
The SEC says a gambler named William Walters received tips and business information about Dean Foods Co. from former Dean Foods director Thomas Davis between 2008 and 2012.
In 2012, the SEC says Walters called Mickelson, who owed him money, and urged him to trade Dean Foods stock.
The SEC says Mickelson did so the next day and made a profit of $931,000.
Mickelson was not in the field of the Byron Nelson Classic in Irving, Texas, where play began Thursday morning.
A representative released the following statement on Mickelson’s behalf on Thursday:
‘Almost six years ago, the Securities and Exchange Commission began an investigation into the stock trading activities of certain individuals. Over two years ago, the government became interested in a particular investment that Phil Mickelson made in 2012. The SEC has now completed its investigation into that investment and has concluded that Phil Mickelson did not engage in any wrongdoing. The SEC has filed a civil complaint against certain individuals, including an acquaintance of Phil’s, but that complaint does not assert that Phil Mickelson violated the securities laws in any way. On that point, Phil feels vindicated. At the same time, however, Phil has no desire to benefit from any transaction that the SEC sees as questionable. Accordingly, he has entered into an agreement with the SEC under which he will return all the money he made on that 2012 investment. Phil understands and deeply respects the high professional and ethical standards that the companies he represents expect of their employees, associates and of Phil himself. He subscribes to the same values and regrets any appearance that, on this occasion, he fell short. He takes full responsibility for the decisions and associations that led him to becoming part of this investigation. As he moves forward, Phil remains committed to demonstrating that he fully shares the same values as the companies he represents. He very much appreciates that they have determined to continue their sponsorship agreements with him. He is pleased that this matter is over, and he will have no further comment.’
In a statement Wednesday announcing the Career Builder Challenge promotion, the PGA TOUR said Mickelson would promote the tournament and participate in various functions during tournament week.
After hearing about the SCE’s complaint, the president of Desert Classic Charities, John Foster, released a statement saying, ‘This is something that’s in the past, and there’s nothing more to it than that. I’m certain that Phil will take care of it, and it will have no effect on our tournament.’
The CareerBuilder Challenge traditionally is the PGA TOUR’s first tournament on the mainland following two weeks in Hawaii to start the calendar year, officials said in Wednesday’s release.
“I’m very excited to undertake the role of tournament ambassador and look forward to doing what I can to help with the continued growth of the CareerBuilder Challenge,” Mickelson said. “Our family loves the area and we have a home in the Coachella Valley, so this is a natural fit for me.”
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