Phil Mickelson has been named as a relief defendant in a lawsuit filed by the United States Securities and Exchange Commission that charges famed sports bettor William “Billy” Walters and Thomas Davis, former chairman of Dean Foods, with securities fraud and wire fraud among other charges, according to The New York Times and other news outlets.
According to The Times, there is no indication that Mickelson will be charged, “though he is listed in the SEC complaint as a relief defendant, an acknowledgment that he was ‘unjustly enriched’ through his trading and must disgorge his ‘ill-gotten gains.’
“At the time of the trades, the SEC said, Mr. Mickelson owed Mr. Walters money from gambling bets. Some of the nearly $1 million in trading profits Mr. Mickelson made went to reimburse Mr. Walters, who himself made more than $17 million from the trades.”
The Times reported the FBI contacted Mickelson at least twice, including once when he finished a tournament round.
According to lawyer, Thomas M. Melsheimer, Davis is assisting the government in its investigation. Walters’ lawyer, Barry Berke, said his client has done nothing wrong.
Both Davis and Walters face federal criminal charges as well as civil charges from the SEC.