Phil Mickeslon Questioned on Insider Trading Investigation

by Jeff Skinner

The Wall Street Journal and the New York Times reported yesterday that Phil Mickelson is being investigated by the FBI and the Securities and Exchange Commission for possible insider trading violations.  The stories focus on a former Pebble Beach pro-am partner of Mickelson’s, Billy Wagner a high stakes gambler and Carl Ichan one of the highest profile Wall St. investors in the country.

From the Matthew Goldstein and Ben Protess New York Time story:

Federal authorities are examining a series of well-timed trades made by the golfer Phil Mickelson and the gambler William T. Walters, people briefed on the investigation said, focusing on trading in two different stocks. The authorities are also questioning what role, if any, the investor Carl C. Icahn may have had in sharing information about one of the stocks: the consumer products company Clorox. 

Mr. Mickelson, a three-time winner of the Masters golf tournament and one of the country’s highest-earning athletes, placed his Clorox trade in 2011, the people briefed on the investigation said. Mr. Walters, an owner of golf courses who is often considered the most successful sports bettor in the country, made a similar trade about that time, the people added. 

Mr. Icahn, a 78-year-old billionaire and one of the best-known investors in the world, was mounting a takeover bid for Clorox around the time that Mr. Mickelson and Mr. Walters placed their trades. 

Mickelson released a statement denying any wrongdoing and said he is not a target of the investigation:

I have done absolutely nothing wrong. I have cooperated with the government in this investigation and will continue to do so. I wish I could fully discuss this matter, but under the current circumstances it’s just not possible. 

He has been instructed by his attorney not to comment any further.

Mickelson did meet with federal investigators after his round on Thursday and is scheduled to tee off at 10:27 at The Memorial.

Click here for Rex Hoggard’s Golf Channel story. Click here for the NY Times story.