Phil Mickelson, the second most popular golfer in the world behind the Phil Ivey of Golf, Tiger Woods, is reportedly under investigation for insider trading with legendary Las Vegas gambler (and high-stakes golfer) Billy Walters.
Walters, who is renown among old-school Vegas gamblers and poker players, was featured a few years ago on 60 Minutes for his mastery of sports betting.
Walters relocated from Kentucky to Vegas around 1980, playing poker and craps. He moved on to sports betting, eventually crushing it by being among the first bettors to crunch sports data in computers. In this regard, he revolutionized sports betting, laying the groundwork for how every major professional gambler operates today. Walters is now reportedly worth north of $125M. Aside from sports betting, he in part made his millions in developing Las Vegas golf courses.
Back to the story. According to espn.com:
A federal official briefed on the investigation told The Associated Press the FBI and Securities and Exchange Commission are analyzing trades Mickelson and Las Vegas gambler Billy Walters made involving Clorox at the same time activist investor Carl Icahn was attempting to take over the company. When Icahn’s intent became public, the stock price jumped.
The article also alleges that Walters may have advised Mickelson to invest in Dean Foods (potentially based on insider knowledge) in 2012.
Mickelson has claimed he has done no wrong in these deals.