Phil Mickelson to Remain as CareerBuilder Challenge Ambassador After Being Named in SEC Complaint

LA QUINTA, CA - Golf pro Phil Mickelson will remain as the official ambassador for La Quinta's CareerBuilder Challenge despite being named today in a Securities and Exchange Commission complaint alleging insider trading, just one day after his tournament ambassadorship was announced.

Desert Classic Charities president John Foster released a statement today confirming that Mickelson would not relinquish his recent post as tournament ambassador after being ordered to repay nearly $1 million that the SEC says was gained by insider trading committed by two other men: William Walters, described as a Las Vegas sports gambler and Thomas C. Davis, a former board member of Dean Foods Company.

The SEC alleges that Walters made $40 million based on illegal stock tips supplied by Davis and that Walters gave
Davis about $1 million of that sum to help pay off Davis' financial debts.

The SEC also alleges that in 2012, Mickelson was urged by Walters to trade Dean Foods securities, netting him almost $1 million, which Mickelson then used to pay off gambling debts he owed to Walters.

While Walters and Davis were charged with insider trading, Mickelson has not actually been charged with a crime. An SEC press release only names him as a "relief defendant,'' which is a person "not accused of wrongdoing but are named in SEC complaints for the purposes of recovering alleged ill-gotten gains in their possession from schemes perpetrated by others.''

According to the SEC, Mickelson has neither admitted nor denied the allegations, but has agreed to repay nearly $932,000 in profits, plus more than $105,000 in interest.

"This is something that's in the past, and there's nothing more to it than that,'' Foster said. "I'm certain Phil will take care of it, and it will have no effect on the tournament.''

The allegations come just one day after CareerBuilder Challenge organizers announced Mickelson as the tournament's newest ambassador, taking over for former President Bill Clinton, who held the post since 2011.

• Previous: Phil Mickelson Named Official Ambassador For CareerBuilder Challenge Tournament

"I'm very excited to undertake the role of tournament ambassador and look forward to doing what I can to help with the continued growth of the CareerBuilder Challenge,'' said Mickelson, a two-time CareerBuilder Challenge
winner who also has secured five top-10 finishes in the tournament. "Our family loves the area and we have a home in the Coachella Valley, so this is a natural fit for me.''

Mickelson's duties will begin next January with the 2017 CareerBuilder Challenge tournament.

--City News Service/Patch file photo