Mass. Golfers Accused of Insider Trading

Phil Mickelson isn’t the only golfer whose name has come up in an insider-trading probe lately.

Federal investigators last week accused a group of friends that includes some of Massachusetts’ leading amateur competitors of profiting handsomely from stock market trades placed with insider information, multiples news outlets have reported.


Last Friday, a federal grand jury indicted two golfers – Douglas A. Parigian, a 10-time Lowell (Mass.) city champion, and Eric J. McPhail, a former club champion at Oakley Country Club outside Boston – on criminal charges of conspiracy and securities fraud. On the same day, the U.S. Securities and Exchange Commission filed civil charges of violating federal antifraud laws against Parigian, McPhail and five others, christening the seven the “Golfing Group.”

The additional five include three of the Bay State’s top amateurs – Douglas Clapp, the reigning Massachusetts Golf Association player of the year; James A. “Andy” Drohen, the 2003 Massachusetts Amateur champion; and John J. Gilmartin, a two-time winner of the prestigious Francis Ouimet Memorial Tournament. All three teed off in the Massachusetts Amateur on Monday.

Members of the group are alleged to have made about $720,000 between 2009 and 2011 trading on illegal information about American Superconductor, a Massachusetts manufacturing firm, The Boston Globe reported Tuesday.

McPhail and Parigian were arrested and released on bond last Friday, the Globe reported. Among the charges they face is one that carries a maximum 20-year prison sentence, the report said.

Meanwhile Clapp, Drohen and Gilmartin have agreed to pay back the proceeds of the trades plus penalties of about $12,000 to $23,000, the Globe reported. All three settled with the SEC without admitting or denying guilt, the report said.

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