Phil Mickelson to pay back $1m made in connection to insider trading

Phil Mickelson, one of the world's most famous golfers, will pay back $1 million he made from an insider trading tip.

Mickelson, 45, was named as a relief defendant in a lawsuit filed by the Securities and Exchange Commission filed on Thursday. Authorities announced that while Mickelson was not accused of any wrongdoing, he agreed to hand back more than $1 million made in an insider trading case.

The complaint, filed by the Securities and Exchange Commission in US District Court for the Southern District of New York, charged a former chairman of Dean Foods Co and a professional Las Vegas gambler with engaging in a years-long insider trading scheme, which included a tip that benefited the professional golfer.

“Simply put, Mickelson made money that wasn't his to make,” Andrew Ceresney, the SEC's enforcement chief, told reporters on Thursday, Reuters reports.

William “Billy” Walters, who's built a multimillion-dollar fortune as a famed Las Vegas sports bettor, and Thomas Davis, Dean Food’s former chairman, were both criminally charged.

“The complaint does not assert that Phil Mickelson violated the securities laws in any way. On that point, Phil feels vindicated,” Mickelson's attorney Gregory Craig said in a statement. “At the same time, however, Phil has no desire to benefit from any transaction that the SEC sees as questionable.”

Walters, 69, was arrested in Las Vegas on Tuesday. Davis, who resigned from Dean Food’s board in August, pleaded guilty on Monday

The SEC complaint cited a July 2012 conversation the golfer had with Walters. According to the SEC, the pair were friends, and the golfer owed the gambler for bets.

Walters had insider information from Davis about an upcoming spin-off Dean Food (DF) was planning, and advised Mickelson to buy its stock, according to the complaint.

Mickelson allegedly bought $2.4 million worth of the stock the next day, dwarfing his total stock holdings of $250,000. When the stock rose in price, Mickelson was able to sell it at a $931,000 profit and pay off his bets with the proceeds of the trade, according to the SEC.

In his statement, Mickelson said his sponsors have decided to stand by him.

“Phil understands and deeply respects the high professional and ethical standards that the companies he represents expect of Phil. He regrets any appearance that, on this occasion, he fell short,” said his statement. “He takes full responsibility for the decisions and associations that led him to becoming part of this investigation.”

Mickelson is one of the most successful and popular golfers. While no longer in the primate of his career, but he still ranks as the world’s 17th best golfer. Ten years ago he was ranked as high as No 2 in the world.

But he has not won a tournament since 2013, when he won the British Open, the most recent of his five wins in a major. He has missed the cut in four of the 12 events he's entered so far this year.

He has lifetime earnings of $79.5 million, second only to Tiger Woods’ total. And his winnings have been dwarfed by his endorsement money. He earned $48 million in 2015, according to an estimate from Forbes. His sponsors include KPMG, Rolex, Barclays, Amgen (AMGN), Exxon Mobil (XOM) and Callaway.