Gambler tied to Mickelson sentenced

NEW YORK » A Las Vegas gambler linked to golfer Phil Mickelson was sentenced Thursday to five years in prison by a judge who said the businessman collected tens of millions of dollars illegally in the stock market to seem like “a winner” to himself and others.

U.S. District Judge P. Kevin Castel rejected the recommendation of probation officials and a lawyer for William “Billy” Walters that he serve only a year in prison, but still imposed a sentence less than the minimum of eight years called for by federal sentencing guidelines. He also fined him $10 million.

“When it comes to the stock market, Billy Walters is a cheater and a criminal and not a very clever one,” Castel said, calling the crime “amateurishly simple.”

He noted Walters was a minor celebrity in Las Vegas with a private plane, a $17 million West Coast home and $175 million in earnings from 2011 to 2015.

The judge said Walters looked to elevate himself when he befriended former Dallas-based Dean Foods Co. board chairman Thomas Davis, getting him to divulge secrets he then traded on.

Castel said Walters was “fixated on appearing to himself and others to be a winner.”

“Money was a way of keeping score,” Castel said.

Prosecutors said Walters began trading in 2006 on secrets Davis told him about the nation’s largest processor and distributor of fresh milk, amassing over $40 million in illegal profits through 2014. Davis, who pleaded guilty to charges, testified against Walters at an April trial. He awaits sentencing.

Mickelson was not mentioned by name during the sentencing, though the judge alluded to him as he described how Walters drew others into his corruption.

The government said Mickelson earned nearly $1 million after Walters told him to buy Dean Foods stock in 2012, profits Mickelson gave Walters to cover gambling debts. The Securities and Exchange Commission cited Mickelson for the trades in a lawsuit, and Mickelson agreed to repay the money. Mickelson was not charged.