Phil Mickelson repays profit from insider trading scandal

The golfer allegedly made an investment based on a tip from a golfing buddy...

Phil Mickelson repays profit from insider trading scandal

Denis Poroy / AP

Top US golfer, Phil Mickelson has agreed to give back more than $930,000 in profits he made from share trading in 2008 as the US regulatory authorities pursue insider trading charges against a high profile sports gambler who allegedly shared insider information with him.

William Walters, a golf course owner to whom Mickelson allegedly owed gambling debts, shared the information with him about a US food and dairy company, Dean Foods, gleaned from the former company chairman with whom Walters was friends. The Wall St Journal reports that the two golfed together.

US authorities say that Mr Mickelson used a portion of the profits gained from the information to repay his debts.

The golfer has not been charged with any wrongdoing, but he will repay the money made through the tip-off, with interest. There is no allegation in the court documents that Mickelson knew the source of the information.

Mr Walters was arrest on Wednesday in Las Vegas - former Dean Foods chairman Thomas C. Davis pleaded guilty to co-operating with the gambler, who is a longtime friend. US authorities have indicted Mr. Walters four times previously for issues related to gambling, but he has never been convicted.

In a settlement deal, Mr Mickelson agreed to repay the money plus $105,291.

Golf Digest estimates that the Californian earned more than $50m last year.