Sunday, June 1, 2014

Phil Mickelson named in federal insider trading inquiry


Phil Mickelson named in federal insider trading inquiry
By Jay Busbee, Devil Ball Golf
May 4, 2014; Charlotte, NC, USA; Phil Mickelson tees off on the fourth hole during the final round of the Wells Fargo Championship at Quail Hollow Club. Mandatory Credit: Joshua S. Kelly-USA TODAY Sports

Phil Mickelson's name has surfaced in a federal investigation into insider trading, along with those of investor Carl Icahn and noted gambler Billy Walters.

None of the three men is accused of any wrongdoing. But federal investigators are examining trades involving the men's connection to two separate companies, Clorox and Dean Foods. Specifically, the investigation is seeking to determine whether Mickelson and Walters traded based on insider information.

In February 2011, Icahn acquired 9.1 percent of Clorox. In July of that year, he made a takeover offer that sent the share price rocketing upward. Federal investigators noted an unusual increase in trading activity on Clorox stock shortly before Icahn announced his offer. One theory the government is investigating, according to the Wall Street Journal, is that Icahn gave information about the upcoming bid to Walters, who then gave information to Mickelson. There is no evidence that Icahn and Mickelson know each other.

"Well-timed trading around the time of his bid caught the attention of investigators, who began digging into the suspicious trading in Clorox stock, the people familiar with the probe said," according to the Wall Street Journal.

Ultimately, Icahn's bid failed. And it is possible that even if Icahn did leak inside information, he did not break any laws doing so.

The other element of the investigation, Dean Foods, involves trades Mickelson and Walter made in August 2012, just before Dean announced its quarterly earnings. Investigators are seeking to determine whether someone inside the company may have tipped off Walters, who in turn notified Mickelson.

Federal investigators had been pursuing the Clorox angle with little success until FBI officials approached Mickelson at a New Jersey airport in 2013.

Mickelson, through his representatives, declined comment, as did federal officials and Walters. Icahn was more definitive.

"We do not know of any investigation," he told the Journal. "We are always very careful to observe all legal requirements in all of our activities." He also termed "inflammatory and speculative" any implication that he was involved in any illegal activities.

Mickelson is currently tied for 37th at the Memorial. He was approached by federal investigators after his opening round on Thursday, and reportedly referred the investigators to his attorneys.

Phil Mickelson
Phil Mickelson is a Masters Tournament winner in (2004, 2006), and an endorser for the Callaway Golf Company.

Note: Tiger Woods is a 1997 winner, 2005 winner, 2002 winner, 2001 winner in the Masters Tournament, and the founder of the Tiger Woods Foundation.
Jonathan M. Orszag is a director at the Tiger Woods Foundation, and a senior fellow at the Center for American Progress.
Open Society Foundations was a funder for the Center for American Progress, the Committee for Economic Development, and the Carnegie Endowment for International Peace (think tank).
George Soros is the founder & chairman for the Open Society Foundations, was the chairman for the Foundation to Promote Open Society, and a supporter for the Center for American Progress.
Foundation to Promote Open Society was a funder for the Center for American Progress, the Aspen Institute (think tank), the Committee for Economic Development, the NAACP Legal Defense & Educational Fund, and the Carnegie Endowment for International Peace (think tank).
Ezekiel Emanuel is a senior fellow at the Center for American Progress, Rahm I. Emanuel’s brother, and was the health care policy adviser for the Barack Obama administration.
Rahm I. Emanuel is Ezekiel Emanuel’s brother, a member of the Commercial Club of Chicago, and was the White House chief of staff for the Barack Obama administration.
R. Eden Martin is the president of the Commercial Club of Chicago, and counsel at Sidley Austin LLP
Michelle Obama was a lawyer at Sidley Austin LLP, and is Craig M. Robinson’s sister.
Alan F. Holmer was a partner at Sidley Austin LLP, and William E. Walters was his chief of staff.
Barack Obama was an intern at Sidley Austin LLP.
Newton N. Minow is a senior counsel at Sidley Austin LLP, and a member of the Commercial Club of Chicago.
Andrew J. McKenna Sr. is a member of the Commercial Club of Chicago, was a director at the Dean Foods Company, and a director at the American Ireland Fund.
G. Craig Sullivan is a director at the American Ireland Fund, and was the chairman & CEO for the Clorox Company.
Donald R. Knauss is the chairman & CEO for the Clorox Company, and a director at the Grocery Manufacturers Association.
Denise M. Morrison is a director at the Grocery Manufacturers Association, and the president & CEO for the Campbell Soup Company.
Doreen A. Wright was the SVP for the Campbell Soup Company, and is a director at the Dean Foods Company.
Gregg L. Engles was the chairman for the Dean Foods Company, and is a director at the Grocery Manufacturers Association.
John H. Bryan was the chairman for the Grocery Manufacturers Association, and is a member of the Commercial Club of Chicago.
Penny S. Pritzker is a member of the Commercial Club of Chicago, the secretary at the U.S. Department of Commerce for the Barack Obama administration, married to Bryan Traubert, was the national finance chair, fundraiser for the 2008 Barack Obama presidential campaign, a co-chair for the 2009 Barack Obama inaugural committee, a fundraiser, national co-chair for the 2012 Barack Obama presidential campaign, a contributor for the 2013 Barack Obama inaugural committee, the host for the Barack Obama fund-raising dinner, 7/2/2008, and Craig M. Robinson’s basketball coach for the children's team.
Bryan Traubert is married to Penny S. Pritzker, and a director at the National Park Foundation.
John C. Cushman III was a director at the National Park Foundation, and is a director at the Callaway Golf Company.
Yotaro Kobayashi is a director at the Callaway Golf Company, a trustee at the Aspen Institute (think tank), and was a trustee at the Committee for Economic Development.
James S. Crown is a trustee at the Aspen Institute (think tank), and a member of the Commercial Club of Chicago.
Lester Crown is a member of the Commercial Club of Chicago, and was a lifetime trustee at the Aspen Institute (think tank).
Adebayo O. Ogunlesi is a director at the NAACP Legal Defense & Educational Fund, a trustee at the Carnegie Endowment for International Peace (think tank), and a director at the Callaway Golf Company.
Phil Mickelson is an endorser for the Callaway Golf Company, and a Masters Tournament winner in (2004, 2006).

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