Insider Trading Bombshell: FBI/SEC Investigating Carl Icahn & Phil Mickelson

Tyler Durden's picture




 

Did you hear the one about the Vegas gambler, the Pro golfer, and the Wall Street insider? Straight off the pages of some Hollywood script, the Wall Street Journal reports that Federal investigators are pursuing a major insider-trading probe involving finance, gambling and sports, examining the trading of investor Carl Icahn, golfer Phil Mickelson and Las Vegas bettor William "Billy" Walters. All three men have denied any investigations or "no comment"-ed about "well timed" stock trades in Clorox in 2011 - around the time Icahn made a $10.2bn bid for the company. Mr. Walters and Mr. Mickelson, 43, play golf together; and rather comedically, Mr. Icahn said he didn't know who Mr. Mickelson was...?

 

 

Via The Wall Street Journal,

The Federal Bureau of Investigation and the Securities and Exchange Commission are examining whether Mr. Mickelson and Mr. Walters traded illicitly on nonpublic information from Mr. Icahn about his investments in public companies, people briefed on the probe said.

 

Investigators are examining whether over the past three years Mr. Icahn tipped Mr. Walters—famous in Las Vegas for his sports-betting acumen—about potentially market-moving investments by Mr. Icahn's company.

 

The FBI and SEC are examining whether Mr. Walters on at least one occasion passed a tip on to Mr. Mickelson, these people said, and are studying the two men's trading patterns.

The denials were quick to come...

"We do not know of any investigation," Mr. Icahn said on Friday. "We are always very careful to observe all legal requirements in all of our activities." The suggestion that he was involved in improper trading, he said, was "inflammatory and speculative."

 

...

 

"Phil is not the target of any investigation. Period," said a lawyer for Mr. Mickelson,

 

...

 

When asked to comment about the investigation, Mr. Walters, reached by phone on Friday, said, "I don't have any comment about anything," and then hung up.

They kinda sorta know each other... kinda...

Mr. Icahn met Mr. Walters, 67, through a mutual acquaintance when Mr. Icahn's company owned the Stratosphere Hotel in Las Vegas. Mr. Icahn bought the Stratosphere in 1998 and sold it along with several other properties for $1.2 billion in 2008.

 

The two struck up a friendship. Mr. Icahn was once an avid poker player and enjoys betting on football games. The two have spoken about stocks.

 

Mr. Walters and Mr. Mickelson, 43, play golf together, said people familiar with their relationship. Sometimes Mr. Walters has suggested stocks for Mr. Mickelson to consider buying, one of the people said.

 

Mr. Mickelson, who has one of the most loyal followings of top professional golfers, has won the prestigious Masters three times.

 

Mr. Icahn said he didn't know who Mr. Mickelson was.

It seems the trades in question are focused on Clorox in 2011... (and also Dean Foods)

The government investigation began three years ago after Mr. Icahn accumulated a 9.1% stake in Clorox in February 2011, said the people briefed on the probe. On July 15, 2011, he made a $10.2 billion offer for Clorox that caused the stock to jump.

 

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.

 

 

...

 

The investigators expanded their probe to look at trading patterns by Mr. Walters and Mr. Mickelson relating to Dean Foods Co. , said the people briefed on the probe. The FBI, following its approach to Mr. Mickelson on Thursday, expressed an interest in his trading in Dean Foods, a person familiar with the situation said.

We are sure somewhere Bill Ackman is laughing his ass off...

Cue CNBC defense... and Icahn's twitter feed seems awkwardly quiet on the matter

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Fri, 05/30/2014 - 20:26 | 4811503 CH1
Fri, 05/30/2014 - 20:30 | 4811525 TheLooza
TheLooza's picture

what Mickelson is thinking:

http://www.youtube.com/watch?v=JiYW9KWBAek

Fri, 05/30/2014 - 20:39 | 4811549 jbvtme
jbvtme's picture

nice to see some good christian boys doing god's work

Fri, 05/30/2014 - 20:57 | 4811590 palmereldritch
palmereldritch's picture

Does this potentially make them the new "Clorox Crew"?

http://gothamist.com/2011/10/19/clorox_crew_accused_of_62_burglarie.php#.

Fri, 05/30/2014 - 23:22 | 4811873 SumTing Wong
SumTing Wong's picture

The SEC is getting involved? Does that mean these three guys took the SEC's stash of porn???

Sat, 05/31/2014 - 00:15 | 4811960 nope-1004
nope-1004's picture

I'm totally shocked that the guy that uses Twitter to front-run his trades is being investigated.  Just shocked.

And here I thought that Carl was one of the few (1 maybe?) that didn't have that lust for money that all other front-runners have.

Sat, 05/31/2014 - 03:40 | 4812134 Number 156
Number 156's picture

Im shocked, shocked I tell you!

Sat, 05/31/2014 - 12:59 | 4812631 gmrpeabody
gmrpeabody's picture

"The SEC is getting involved?"

Apparently they need to add to the office party fund..., and get their piece of the action. 

Sat, 05/31/2014 - 09:43 | 4812384 Stuck on Zero
Stuck on Zero's picture

The real crime was committing illegal investing without cutting the government in for its share of the profits,

Sat, 05/31/2014 - 22:17 | 4813645 dark pools of soros
dark pools of soros's picture

you been here 8 weeks and using a 4 year old SEC jab??  who's alt are you?

 

Fri, 05/30/2014 - 21:19 | 4811658 AllWorkedUp
AllWorkedUp's picture

Upvoted you but just dont see any of the good Christian boys you refer to. Nope, look like the sme old money changers to me.

Fri, 05/30/2014 - 22:07 | 4811753 J S Bach
J S Bach's picture

My God... not Phil!

Okay, the country's really gone down the tubes now.  With that baby face... whoda thunk?  

I'll wait until the facts will out before passing judgement, but nothing surprises me anymore.

 

Fore!

Fri, 05/30/2014 - 22:30 | 4811787 MontgomeryScott
MontgomeryScott's picture

Hopefully, they will make public the building where the records of the SEC/FBI investigation are stored.

ENRON'S investigation records were in WTC7.

No, REALLY, they were.

Fact-check it ('Snopes' doesn't count, by the way).

Maybe they can get 20 Saudis this time. NAW, Mickelson and Ichan combined don't have enough money for that. Perhaps, some Somali pirates with Ak's? Chechen rebels? Guys who wear wool face-masks and like to do overhead bar swinging on a jungle gym?

DAMN, it's getting SO HARD to put together a demolition op these days...

 

 

Sat, 05/31/2014 - 00:33 | 4811994 Dolar in a vortex
Dolar in a vortex's picture

('Snopes' doesn't count, by the way).

You went right to  the top of my credibility ladder.

I've supplied Snopes with contradictory evidence to a position that he took and he responded, "so what". His credibility is zero with me.

 

Sat, 05/31/2014 - 00:59 | 4812018 Pool Shark
Pool Shark's picture

 

 

And by "he," you of course mean Barbara Mikkelson? [note different spelling of Mickelson...]

 

Sun, 06/01/2014 - 09:21 | 4814047 TeMpTeK
TeMpTeK's picture

Investigation going nowhere in....3....2.....1

Fri, 05/30/2014 - 20:39 | 4811553 XitSam
XitSam's picture

They didn't buy their "Jon Corzine Patented Get Out of Jail Free!" card.

Fri, 05/30/2014 - 20:54 | 4811588 Frilton Miedman
Frilton Miedman's picture

It's not too late to write that anonymous check to the specified superPAC.

Fri, 05/30/2014 - 20:59 | 4811607 nasa
nasa's picture

If the boss has to remind you to pay tribute, its already too late. 

Fri, 05/30/2014 - 21:00 | 4811609 fonzannoon
Fri, 05/30/2014 - 23:22 | 4811870 deflator
deflator's picture

 Stuck on Libertarian island!

Sat, 05/31/2014 - 10:05 | 4812410 booboo
booboo's picture

Hurry Phil, run for congress and get a retroactive exemption from insider trading or just write a check, just don't lie under oath, ask Martha.

Sat, 05/31/2014 - 10:24 | 4812435 Berspankme
Berspankme's picture

Just write a check to the Obama 2016 campaign and you'll be good. May even become an ambassador and be able to steal more

Sat, 05/31/2014 - 01:12 | 4812026 Renewable Life
Renewable Life's picture

Hey Boyz, how does that unbridled big government of the people, feel now?
Let's spy on everyone because they might be terrorist, ya right!! Try let's spy on everyone to make sure we get "control" of the whole fucking population, especially the rich and success niche!

Remember sheeple, "they hate us for our freedoms"!

Fri, 05/30/2014 - 20:37 | 4811543 Bangin7GramRocks
Bangin7GramRocks's picture

That chubby dummy has made hundreds of millions hitting that dumb fucking white ball and it's just not enough. Greedy assholes like that deserve to go to jail! 

Fri, 05/30/2014 - 20:49 | 4811574 disabledvet
disabledvet's picture

You need to take great care in your denials in these matters...I'm not sure I would advise them to get a lawyer actually.

Believe it or not you can be arrested for the denial. You can be denied counsel by the Government as well!
Sounds strange to say "the casino operator is concerned about his reputation"...but guess what "even the casino operator is concerned about his reputation."

Fri, 05/30/2014 - 21:06 | 4811623 playnstocks
playnstocks's picture

Ahhh.. FBI says your a target.. Lawyer UP Fast!

 

 

 With the FEDS it not if your going to jail when they charge you.. It's how long!

 

 

Fri, 05/30/2014 - 22:34 | 4811796 disabledvet
disabledvet's picture

"Gotta hang someone. Might as well be Phil Mickelson."

I'd laugh if he spent the rest of his life in jail for this.
Or better yet "if they were betting on whether someone would die."

Like...Phil Mickelson for example.

Sat, 05/31/2014 - 08:16 | 4812257 disabledvet
disabledvet's picture

It really is that stupid. "Lying to investigators."

I know this sounds crazy "but just tell the truth" and go from there. Bald face denials that you know are false just make it worse.

What happened to Martha Stewarts broker again?

Sat, 05/31/2014 - 08:52 | 4812292 Pee Wee
Pee Wee's picture

The casino operators are not, and never will be, bulletproof.

Fri, 05/30/2014 - 21:02 | 4811613 living on the edge
living on the edge's picture

Really, fuck you Bangin Dick Head....

Fri, 05/30/2014 - 22:24 | 4811781 Bangin7GramRocks
Bangin7GramRocks's picture

Sorry Phil.

Sat, 05/31/2014 - 09:36 | 4812374 SilverIsKing
SilverIsKing's picture

Interesting how most of the ZH posters automatically buy what .gov claims to be true. Maybe it is or maybe it's not but for all the .gov bashing and NSA crap posted here, I a bit surprised that everyone here has found them guilty as charged. Let's see the "facts" first. Yes, "facts" in quotes since we won't really know if we are even getting those.

Fri, 05/30/2014 - 21:13 | 4811638 ebworthen
ebworthen's picture

I say send Corzine, Paulson, Mozillo, Blankfein, Dimon, & the rest of the Wall Street criminal crew to jail first if they can't beat Mickleson in 18 holes.  No Mulligans.

Fri, 05/30/2014 - 22:40 | 4811802 MontgomeryScott
MontgomeryScott's picture

I SAY send SOETORO to jail if he can't plant HIS balls in their 18 holes in a session. Reuben, Bush...

I only counted 16 holes in your post (males only have two), so I added two to round it up to 18.

Who's 'Mulligan'? Is that a new official over in Brussels or something?

Fri, 05/30/2014 - 21:43 | 4811710 nmewn
nmewn's picture

Speaking of greedy assholes.

Fri, 05/30/2014 - 20:48 | 4811572 FredFlintstone
FredFlintstone's picture

That is the first thing I thought.

Fri, 05/30/2014 - 22:01 | 4811747 Spitzer
Spitzer's picture

The first thing I thought was how big of a dump the Stratospher is. Our room stunk to shit there. Seriously ... It's a sick place. The ventilation is a joke

Fri, 05/30/2014 - 21:01 | 4811610 JLee2027
JLee2027's picture

Yet, the banksters continue to escape justice despite open stealing. Amazing.

Fri, 05/30/2014 - 22:38 | 4811801 disabledvet
disabledvet's picture

"Carl Icahn." Hmmm.

Sat, 05/31/2014 - 08:53 | 4812299 Pee Wee
Pee Wee's picture

incorporation, baby - totally fukin lawless.

Fri, 05/30/2014 - 21:33 | 4811691 rubiconsolutions
rubiconsolutions's picture

Apparently insider trading is having "fore"knowledge.

Fri, 05/30/2014 - 22:41 | 4811804 MontgomeryScott
MontgomeryScott's picture

I saw what you did there!

Fri, 05/30/2014 - 22:13 | 4811764 Larry Dallas
Larry Dallas's picture

Get the popcorn. Icahn may have "pant-zed" Ackman with the Herbalife trade, but something tells me nothing tastes better and is life's best feeling than ackman will feel with revenge. Not even coke can make you feel that high...

Fri, 05/30/2014 - 22:45 | 4811816 prains
prains's picture

FIGJAM = Mickelson

Fri, 05/30/2014 - 20:27 | 4811511 HedgeAccordingly
HedgeAccordingly's picture

Good. He needed it http://hedge.ly/1pvYOQi

Fri, 05/30/2014 - 20:28 | 4811516 q99x2
q99x2's picture

Fuck yeah. Anybody determined to be a financial pervert shall be locked up and have their DNA altered. These NWO folks aren't after money any moreThey want it all.

Fri, 05/30/2014 - 20:29 | 4811519 fonzannoon
fonzannoon's picture

I am sick of these 1%ers getting away with this bullshit. I hope Congress gets involved and investigates the hell out of it when they take a break from insider trading their own accounts.

Fri, 05/30/2014 - 20:34 | 4811537 10044
10044's picture

By 1%ers you mean the congress right?

Fri, 05/30/2014 - 20:50 | 4811575 B2u
B2u's picture

You are shitting me.  Congress get involved?  You write for late night comedy?

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