Mickelson Addresses Insider Trading Allegations


Phil Mickelson has had to direct his attention from playing golf to a much more unsavory subject. The 43-year-old, five-time major champion confirmed Saturday that FBI agents investigating insider trading approached him this week during the Memorial Tournament at Muirfield Village Golf Club in Dublin, Ohio.

The federal investigation by the FBI and the Securities and Exchange Commission (SEC) stems from trades made by Mickelson and Las Vegas gambler-golf course owner Billy Walters after investor Carl Icahn attempted to take over Clorox, a major consumer-products manufacturer based in Oakland, Calif.

The probe is looking into a series of winning trades in the summer of 2011 that got the attention of federal regulators. Together, Mickelson and Walters made millions of dollars betting on Clorox and another stock, according to sources. Reports of the investigation appeared in several newspapers, including The Wall Street Journal and The New York Times.

The New York City-based Icahn was labeled a "corporate raider" after his hostile takeover of TWA in 1985 and subsequent systematic dismantling of the airline's assets; he reaped over a billion dollars in the process. Among other lucrative business moves, in 2008 Icahn sold his interests in several Las Vegas casinos in a $1.3 billion deal. Forbes magazine has put Icahn's current net worth at over $20 billion.

Of the allegations involving Mickelson and Walters, in which the 78-year-old Icahn shared information of his takeover of Clorox with Walters, and whether Walters passed that on to Mickelson, Icahn told Doug Ferguson of The Associated Press, "I don't give out inside information. For 50 years I have had an unblemished record."

The newspaper reports also said federal officials were examining trades in 2012 by Mickelson and Walters involving Dean Foods, a Dallas-based food and beverage products company.

Walters is a legendary figure in sports-betting. His company, Walters Golf, owns the Bali Hai, Royal Links and Desert Pines courses in Las Vegas. When asked about the federal investigation, Walters told Ferguson, "While I don't have any comment, pal, I'll talk to you later."

Through 54 holes of the Memorial Mickelson has shot rounds of 72, 70 and 72, entering Sunday's final round at 2-under 142, 10 strokes behind leader Bubba Watson.

The line of questioning by the media Saturday evening might have been different had Mickelson been among Memorial's leaders. But since he was way down the leaderboard the World Golf Hall of Fame member - who suffered a personal PR hit in January 2013 when he complained about the high tax rate in his native California and threatened to move out of state - was forced to parry inquiries about the federal investigation launched Thursday.

"I've got no problem cooperating," he told reporters. "I've been cooperating and I've done nothing wrong. And so hopefully in the future, or hopefully shortly, we'll be able to discuss this further."

Mickelson, who according to Forbes earned $49 million in 2013, added that the probe wasn't going to affect his schedule, including the U.S. Open in two weeks, or his approach on the golf course. "I'm not going to change the way I carry myself," he said. "Honestly, I've done nothing wrong. I'm not going to walk around any other way."

Before the start of the interview after Mickelson's third round reporters were requested to focus on golf. But they didn't follow the script as evidenced by the Q&A below.

Q. How much has this investigation been weighing on you?

PHIL MICKELSON: You know what? I can't really go into much right now, but as I said in my statement: I have done absolutely nothing wrong. And that's why I've been fully cooperating with the FBI agents, and I'm happy to do so in the future, too, until this gets resolved. But for right now - and hopefully it will be soon - but for right now I can't really talk much about it.

Q. It has to be unsettling, though, to have FBI officials approaching you at a tournament when you're two weeks from a huge tournament?

PHIL MICKELSON: I really can't say - I don't want to say anything more than that. But I've got no problem cooperating. I've been cooperating and I've done nothing wrong. And so hopefully in the future or hopefully shortly we'll be able to discuss this further, but for right now -

Q. Can you say anything? Has it been a distraction?

PHIL MICKELSON: Not until Thursday.

Q. So how close are you and Billy Walters, and did you know where he got the stock advice that he gave you?

PHIL MICKELSON: So I'm really not going to say anything more until future sometime in the near future. I hope. I hope it's soon. But right now, as this is going on, I'll cooperate as much as I can. I'll cooperate fully with the FBI, but I'm not going to say any more.

Q. Did you invest in Clorox at his advice and did you invest in Dean Foods at his advice?

PHIL MICKELSON: You should know; you wrote the article.

Q. Where did you see the agents? How much has the situation affected your golf?

PHIL MICKELSON: It hasn't until Thursday.

Q. Where did you see them on Thursday, in the clubhouse?

PHIL MICKELSON: After the round they followed me just like the article said. It was accurate.

MODERATOR: We've got to move on.

Q. I'm sorry, but we've got to keep going. When was the first time the FBI approached you about this investigation?

PHIL MICKELSON: I really don't want to add anything to that.

Q. There was an indication that last year at Teterboro Airport was the first time. We're just trying to confirm if that's correct or not.

MODERATOR: He's requested golf only now. He's not going to comment. So move on or this will be over.

PHIL MICKELSON: I'm not going to talk much more about it. But I've been cooperating in every way I can.

Q. Except for in this case.

PHIL MICKELSON: Well, not with you, but with the people that are doing the investigating, yeah (Laughter).

Q. Aside from the distraction Thursday, do you think you can put it past you leading into the U.S. Open?

PHIL MICKELSON: Yes. I do. I think that as a player you have to be able to block out whatever is going on off the golf course and be able to focus on the golf course. And it's not going to change the way I carry myself. Honestly, I've done nothing wrong. I'm not going to walk around any other way.

Q. How would you describe today's round?

PHIL MICKELSON: Interesting. (Laughter).

Q. Can you explain that?

PHIL MICKELSON: Most of my rounds are, but just for other reasons.

Q. Did you think about not playing today?

PHIL MICKELSON: No, of course not.

Q. Good form on 16.

PHIL MICKELSON: It's the shortest par-4 on Tour, that 16th hole. It's reachable with an iron for most guys. (Laughter). And I've made three pars these last three days, in my mind, but that's a tough hole for me.

Q. Are you any better with where your game's at right now? Obviously coming in it was your big thing to get on track a little bit more.

PHIL MICKELSON: The big thing for me is that this week the fairways are playing tighter than they have because they're firm and the ball's running, and I've hit a lot of fairways. I hit like 11 fairways. I'm actually counting out there because it's going to be a big factor for the Open. I believe I've averaged 10 or 11 fairways a day. That's a big step for me because I've been hitting drivers a lot.

Q. Will your schedule change at all now?

PHIL MICKELSON: No, not at all.

The transcript for the above interview is courtesy of ASAP Sports.