Golfer Phil Mickelson was named in an insider trading case by the Securities and Exchange Commission Thursday morning, according to a filing.
The case alleges that Mickelson received insider tips from sport bettor Billy Walters, one of the co-lead defendants in the case, regarding Dean Foods. Walters was receiving the information from Dean Foods chairman Thomas Davis, the other co-lead defendant.
According to the filing, Walters called Mickelson in July 2012 telling him to purchase Dean Foods stock based on information received from Davis that the company was about to spin off its WhiteWave division. The week after the phone call, Dean Foods stock rose 40%, making Mickelson almost $1 million.
In the case, Mickelson is a relief defendant, meaning that he was unaware of the scheme between Walters and Davis, and is not accused of insider trading, just unwittingly profiting from it.
The case focuses on tips passed to Walters by Davis between 2008 and 2012, which netted at least $40 million in profits.
Here's the SEC's breakdown (emphasis ours):
In July 2012, Walters called professional golfer Philip A. Mickelson. Mickelson had placed bets with Walters both before and after July 2012 and owed Walters money at the time of the telephone call. At a time when Walters was in possession of material nonpublic information regarding Dean Foods, Walters communicated with Mickelson and urged Mickelson to trade in Dean Foods stock, which Mickelson did the next trading day in three brokerage accounts he controlled. About one week later, Dean Foods's stock price jumped 40% on the announcements of the WhiteWave spin-off and strong second quarter ("Q2") 2012 earnings, allowing Mickelson to profit by approximately $931,000.
Depending on the outcome of the case, Mickelson will be required to pay back the profits gained from the trades.
Golfer Phil Mickelson might've unwittingly made $1 million from an insider-trading scheme
CHARLOTTE, NC - MAY 14: Phil Mickelson yells four after teeing off on the 16th hole during round one at the Wells Fargo Championship at Quail Hollow Club on May 14, 2015 in Charlotte, North Carolina. (Photo by Jeff Gross/Getty Images)
Phil Mickelson watches the ball fly during a NCAA golfing event.
21 Feb 1993: Phil Mickelson lines up a putt during the 1993 Buick Invitational at the Torrey Pines Golf Course in Torrey Pines, California. Mandatory Credit: Gary Newkirk /Allsport
24 Feb 1995: Phil Mickelson looks on during the Nissan Los Angeles Open at the Riviera Country Club in Los Angeles, California.
27 Jan 1996: Phil Mickelson of the USA drives at the 17th hole during the final round of the Phoenix Open at the TPC of Scottsdale in Scottsdale, Arizona. Mickelson defeated Justin Leonard in a three-hole playoff. Mandatory Credit: Simon P. Barnett/Alls
9 Feb 1996: Golfer Phil Mickelson takes to the green during competition at the Buick Invitational at Torrey Pines Golf Course in La Jolla, CaliforniaCalifornia. Mickelson finished 17 under par for a 271. Davis Love III won the tournament by two strokes
8 Feb 1996: Phil Mickelson swings at the ball during the Buick Invitational in San Diego, California.
31 Jan 1998: Phil Mickelson during the AT&T National Pro-Am at Spyglass Golf Course in Pebble Beach, California. Mandatory Credit: Craig Jones /Allsport
23 Aug 1997: Phil Mickelson hugs Amy Mickelson at the NEC World Series of Golf at the Firestone Country Club in Akron, Ohio. Greg Norman went on to win the tournament.
10 Apr 1999: Phil Mickelson of the USA plays out the bunker during the 1999 US Masters at the Augusta National GC in Augusta, Georgia, USA. \ Mandatory Credit: Craig Jones /Allsport
18 Aug 2000: Phil Mickelson follows his drive during the PGA Championship, part of the PGA Tour at the Valhalla Golf Club in Louisville, Kentucky.Mandatory Credit: Andy Lyons /Allsport
25 Jan 2001: A silhouette of a golfer during the Phoenix open at the TPC Scottsdale in Scottsdale, Arizona.Mandatory Credit: Jon Ferrey /Allsport
8 Apr 2001: Phil Mickelson of the USA lines up a putt on the 4th green during the final day of the 2001 Masters at the Augusta National Golf Club, Augusta, GA, USA.....DIGITAL IMAGE. Mandatory Credit: Stephen Munday/ALLSPORT
15 Jun 2001: Phil Mickelson hits a long drive during the 101st US Open at the Southern Hills Country Club in Tulsa, Oklahoma.Mandatory Credit: Jamie Squire /Allsport
29 Nov 2001: Phil Mickelson plays golf at Whisper Rock, a course that he designed in Scottsdale, Arizona. Mandatory Credit: Scott Halleran/Getty Images
HILTON HEAD ISLAND, SC - APRIL 20: Phil Mickelson pulls a club during the third round of the WorldCom Classic at Harbour Town GL in Hilton Head Island, South Carolina on April 19, 2002. (Photo by Craig Jones/Getty Images)
GULLANE, SCOTLAND - JULY 16: Phil Mickelson of the USA waits to play his shot during the practice round for the 131st Open Championships at Muirfield Golf Club, Gullane, Scotland on July 16, 2002. (Photo by Andrew Redington/Getty Images)
THOMASTOWN - 19 SEPTEMBER: Phil Mickelson of the USA hits his approach to the second green during the first round of the World Golf Championships: American Express Championship at Mount Juliet Estate in Thomastown, Kilkenny, Ireland on September 19, 2002. (photo by Andrew Redington/Getty Images)
PUERTO VALLARTA, MEXICO - DECEMBER 14: (L-R) Phil Mickelson of USA celebrates his birdie on the 1st hole with David Toms of USA during the third round of the EMC World Cup at the Vista Vallarta Club de Golf on December 14, 2002 in Puerto Vallarta, Mexico. (Photo by Harry How/Getty Images)
OLYMPIA FIELDS, IL - JUNE 13: Phil Mickelson reacts to a missed putt during the second round of the 2003 US Open on the North Course at the Olympia Fields Country Club on June 13, 2003, Olympia Fields, Illinois. (Photo by Ross Kinnaird/Getty Images)
SANDWICH, ENGLAND - JULY 17: Phil Mickelson of the USA plays out from a bunker on the 16th hole during the first round of the Open Championship at the Royal St George's course on July 17, 2003 in Sandwich, England. (Photo by Ross Kinnaird/Getty Images)
AUGUSTA, UNITED STATES: Phil Mickelson (L) of the US receives the green jacket from 2003 Champion Mike Weir (R) of Canada at the awards ceremony after Mickelson made the birdie putt the 18th green during the final round of the Masters Golf Tournament 11 April 2004 at Augusta National Golf Club in Augusta, GA. Mickelson won the tournament at nine under par. AFP PHOTO/Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
Phil Mickelson checks the wind at Whistling Straits, site of the 86th PGA Championship in Haven, Wisconsin August 12, 2004. (Photo by A. Messerschmidt/Getty Images)
UNITED STATES - FEBRUARY 13: Phil Mickelson during the final round of the 2005 AT&T Pebble Beach National Pro-Am at Pebble Beach Golf Club in Pebble Beach, California on February 13, 2005. Mickelson won the event by four strokes at -19 par. (Photo by Mike Ehrmann/Getty Images)
MAMARONECK, NY - JUNE 15: Phil Mickelson hits a tee shot on the 15th hole during the first round of the 2006 US Open Championship at Winged Foot Golf Club on June 15, 2006 in Mamaroneck, New York. (Photo by Nick Laham/Getty Images)
AUGUSTA, GA - APRIL 09: Phil Mickelson is presented the green jacket by Tiger Woods after his 7-under par victory during the Final Round of The Masters at the Augusta National Golf Club on April 9, 2006 in Augusta, Georgia. (Photo by Getty Images)
STRAFFAN, IRELAND - AUGUST 28: Phil Mickelson of the USA speaks to the press during a USA Team Practice prior to the 2006 Ryder Cup at The K Club on August 28, 2006 in Straffan, Co. Kildare, Ireland. (Photo by Ian Walton/Getty Images)
PONTE VEDRA BEACH, FL - MAY 13: Phil Mickelson of the USA holds the trophy after the final round of THE PLAYERS held on the Stadium Course at The TPC Sawgrass, on May 13, 2007 in Ponte Vedra Beach, Florida. (Photo by David Cannon/Getty Images)
SINGAPORE - NOVEMBER 15: Phil Mickelson of USA in action during the 3rd round of the Barclays Singapore Open at Sentosa Golf Club on November 15, 2008 in Singapore. (Photo by Ian Walton/Getty Images)