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Feds investigating Carl Icahn, Phil Mickelson for insider trading

  • The FBI and SEC are pursuing a major insider trading probe involving investor Carl Icahn, golfer Phil Mickelson and Las Vegas gambler Billy Walters, according to multiple reports.
  • Investigators reportedly are examining whether Icahn (IEP) passed non-public tips on investments he was planning to make to Walters, and whether Walters then tipped Mickelson.
  • The government investigation is said to have begun after Icahn accumulated a 9% stake in Clorox (CLX) in Feb. 2011; Icahn made a $10.2B bid for CLX in July, and large, risky trades made in CLX options in the days before the bid sparked rumors that word had leaked.
  • Authorities also are looking into trades Mickelson and Walters made related to Dean Foods (DF).
Comments (45)
  • Stone Fox Capital
    , contributor
    Comments (6747) | Send Message
     
    so it takes 3 years to track down trades... insane it should only take 3 days to determine the people buying shares and options prior to bid.
    31 May 2014, 12:05 AM Reply Like
  • Blue22
    , contributor
    Comments (313) | Send Message
     
    Carl blabbing to his bookie and his golfer. I wonder what that was really about?
    31 May 2014, 01:30 AM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    It ain't Clorox stock that's fer sure.

     

    Phil Mickelson could wind up spending the rest of his life in prison if word of what they're really gambling on gets out.
    31 May 2014, 09:56 AM Reply Like
  • Energysystems
    , contributor
    Comments (1270) | Send Message
     
    Rest of his life in prison? lol yeah that's likely.
    31 May 2014, 11:21 AM Reply Like
  • Visitgoth
    , contributor
    Comments (71) | Send Message
     
    well...one private plane just exploded. "No comment" from them either.
    1 Jun 2014, 12:31 PM Reply Like
  • Randal James
    , contributor
    Comments (3269) | Send Message
     
    Blue

     

    Maybe from one of his famous tweets?

     

    #like the times I let Phil in on those sweet going-private deals!
    31 May 2014, 02:29 AM Reply Like
  • User 9224631
    , contributor
    Comments (3) | Send Message
     
    So IEP was worth 17 and change in 2001 and is now over 100 per share. Just investing in the companies where IEP had taken a major stake would put one ahead of the curve. The 9% stake in Clorox was public info. As was stake in Netflix. And wanting to put someone on the board to represent you as a major investor is a hint of change.

     

    You just have to judge who will win (e.g. Icahn's view of Herbalife vs Ackerman's).
    Keeping up with which major warriors are taking a major stake in a company can make you some money as well.
    31 May 2014, 05:53 AM Reply Like
  • june1234
    , contributor
    Comments (3066) | Send Message
     
    Say it aint so Phil. Tweeting Carl, professional gambler, clean cut homely honest looking Phil hangs out with some colorful characters. Just another image on the screen.
    31 May 2014, 06:05 AM Reply Like
  • User 509088
    , contributor
    Comments (1188) | Send Message
     
    weird how the world's changed, when a professional gambler and a professional athlete can buddy up together.

     

    is it just friendship or is there a quid pro quo?
    31 May 2014, 07:47 AM Reply Like
  • King Rat
    , contributor
    Comments (834) | Send Message
     
    You mean like a boxer throwing a fight or a jockey throwing a race? White Sox throwing the World Series?
    31 May 2014, 01:11 PM Reply Like
  • deercreekvols
    , contributor
    Comments (6508) | Send Message
     
    Go directly to jail. Do not pass go. Do not collect $200.
    31 May 2014, 07:56 AM Reply Like
  • drax7
    , contributor
    Comments (346) | Send Message
     
    Typical gov attempt to ruin a person like Icahn who is powerful
    And against the socialist policies of Obama.
    31 May 2014, 08:18 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (962) | Send Message
     
    oh brother...

     

    It's either insider trading or it isn't. Obama is the President but I really doubt he's the "evil puppet master" behind everything the government does on a day-to-day basis.

     

    I'm a Republican but idiotic posts like this only make all of us look like a bunch right-wing nut jobs.
    31 May 2014, 08:57 AM Reply Like
  • Patent News
    , contributor
    Comments (1394) | Send Message
     
    sounds like an idiotic article from idiotic government bureaucrats
    31 May 2014, 08:24 AM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    talk about a "big fat target."
    wanna set an example for all those so called athletes out there?

     

    "I'm Phil Mickelson and i'm above the law! I'm a golfer!"

     

    All those people watching him with their sunglasses on take on a whole new meaning now.
    31 May 2014, 10:01 AM Reply Like
  • stockpicker99
    , contributor
    Comments (88) | Send Message
     
    When avg. investor have no inside info. but the billionaire Carl can have all the inside info.
    then the system is rigged. That is why the younger generation is shying away from Wall Street.
    Attorney General and SEC both are trying to bring some sanity in the investment world so that
    John Doe may have a chance to win the game.
    31 May 2014, 09:24 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    An Eric Holder resignation would certainly restore some "sanity" and credibility to the Dept of Justice.
    31 May 2014, 02:14 PM Reply Like
  • jshindler
    , contributor
    Comments (11) | Send Message
     
    Carl doesn't have inside info. HE IS the inside info. What the heck are you talking about?
    1 Jun 2014, 10:50 PM Reply Like
  • Joe2922
    , contributor
    Comments (422) | Send Message
     
    There is nothing new under the sun, moon, and stars. Stuff like this began on Wall Street the day it opened. Nothing has changed, har har.
    And that quote? It's from King Solomon in the Old Testament, it was true then as well.
    Carl doesn't always make money, but when he does, he milks billions.
    31 May 2014, 09:36 AM Reply Like
  • JeanPhilippe
    , contributor
    Comments (16) | Send Message
     
    What kind of effect this news will have on the stock price?
    31 May 2014, 10:01 AM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
     
    This is all about information exchanges and "mass murder incorporated."

     

    Everyone knows what these folks are really gambling on.
    Certainly not with of course.
    31 May 2014, 10:02 AM Reply Like
  • King Rat
    , contributor
    Comments (834) | Send Message
     
    Omar Bradley!!!! One of the nearly forgotten American heroes of the 20th century.
    31 May 2014, 01:13 PM Reply Like
  • Larry Abrams
    , contributor
    Comments (71) | Send Message
     
    Yea, We need Omar Bradley to come back and run the VA like he did after WWII
    31 May 2014, 01:29 PM Reply Like
  • Visitgoth
    , contributor
    Comments (71) | Send Message
     
    we need him to take Moscow like he did Paris.
    1 Jun 2014, 12:33 PM Reply Like
  • convoluted
    , contributor
    Comments (2095) | Send Message
     
    Anyone with a modicum of right brain power can track large option moves. There used to be a couple of guys or so that would report such results daily on SA-maybe they still do.
    I noticed two such moves yesterday, just surfing around. But, they were index plays, and not likely very useful. Sometimes, people make very large bets on a stock or index doing absolutely nothing-or moving just a small amount one way or the other. I also spot earnings plays, especially on mo stocks. It's hard to tell in those instances whether anyone is playing inside info. Dominant positions leaning one way are often big losers. A slower accumulation of call options relative to potential t/o candidates can also be spotted. But, more often than not, rumors don't materialize-although a rumor can be just as profitable as ultimate reality. I suppose watching the option chains is somewhat akin to card counting-without the necessity of having a great memory.
    And, a lot of people track the major movers/shakers-hoping to glean some useful tidbit.
    Rest assured, the PGA brass is nervous as hell right now. But, as a professional golfer (who hasn't made a cut since Turtle Bay 6 years ago), I like and respect Phil. So, instead of playing golf in Iowa today, I'm studying trade strategies for next week. Well, the U.S. Senior Open qualifier is a bit more than 2 weeks away. I just wish I possessed a mere fraction of Phil's short game magic.
    31 May 2014, 11:16 AM Reply Like
  • Rich in NJ
    , contributor
    Comments (39) | Send Message
     
    The more interesting questions are who leaked this and why? Someone has an agenda.
    31 May 2014, 11:28 AM Reply Like
  • phxcrane
    , contributor
    Comments (478) | Send Message
     
    I'm sure its a coincidence that Phil was quoted by all the news media on his thoughts and complaints about the administration and the amount of taxes he pays. People familiar with Chicago politics are not surprised.
    31 May 2014, 11:43 AM Reply Like
  • Rich in NJ
    , contributor
    Comments (39) | Send Message
     
    Do you actually believe that? What Mickelson thinks about anything other than golf doesn't matter to anyone. So his views on taxes are irrelevant.

     

    I was referring to someone lower down the food chain.
    1 Jun 2014, 02:44 AM Reply Like
  • kgerickson
    , contributor
    Comments (263) | Send Message
     
    Phil is primarily pissed about california tax rates (who wouldn't be). He knows he should move to florida or texas like every other pga pro but he likes the california lifestyle. He's got plenty of options to reduce his taxes. If Romney is paying 13%.... Phil should look in the mirror and fix his own problem.
    1 Jun 2014, 07:48 AM Reply Like
  • bbro
    , contributor
    Comments (10150) | Send Message
     
    " Martha" Mickelson...
    31 May 2014, 12:30 PM Reply Like
  • edexter
    , contributor
    Comments (632) | Send Message
     
    I heard someone who had access (Involuntarily) to info on my account say there something going on with Clorox. I had Clorox and bought more after Icons announcement because I felt he was going to keep the price stable in an unstable market and I still have all the shares today. I am/was being harassed when the market goes up and down so I am sure prior knowledge of this trade is being used as an excuse for other crimes... Not all the stuff I hear is accurate though. It was just vague where I had to guess what stock the source was talking about.
    31 May 2014, 12:39 PM Reply Like
  • King Rat
    , contributor
    Comments (834) | Send Message
     
    edexter, if I suggested that be deleted, I might be guilty of suggesting somebody cover up their own public admission of guilt.

     

    The SEC actually prefers going after small fries because they know big fish can hire more lawyers and will drag on a case beyond its own good, tiring the public, then weasel their way out of guilt. That would give the SEC a high profile legal defeat which they fear would embolden the small fries.

     

    In other words, the SEC RARELY goes after the big fish unless the case appears to be open and shut. Thus doesn't look good for Icahn, but what doesn't look good for him DOES look good for AAPL. At last his parasitic involvement with liberating Apple of its cash trove without any ROI may finally come to an end.
    31 May 2014, 01:25 PM Reply Like
  • Visitgoth
    , contributor
    Comments (71) | Send Message
     
    as long he's not a PGA "Tour Professional" he should be fine.

     

    Golf course always remind of Napoleon. Still..."where is the counter offensive?" The only thing in the sand trap is a golf ball? Very confusing.
    1 Jun 2014, 12:37 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (811) | Send Message
     
    Icahn, Ackman. Is something missing here?
    31 May 2014, 01:22 PM Reply Like
  • Joseph Schmidt
    , contributor
    Comments (12) | Send Message
     
    Mickelson like he need more money, greed is powerful, Phil will get the Judge to play a round of golf with him and the case will be closed. Phil need a second helicopter as his first one needs a good vacuum. insider trading goes on every day but the poor guy who wants to keep his house cant get ahead because of assholes like Phil and Icon, you want to see the homes built in the Hamptons by guys who shorted the market in 2008, you think those guys had a crystal ball,dont thinks so, all insider trading.
    31 May 2014, 02:07 PM Reply Like
  • HillbillyCadilac
    , contributor
    Comments (15) | Send Message
     
    Sounds like a Shakedown.
    31 May 2014, 02:28 PM Reply Like
  • Visitgoth
    , contributor
    Comments (71) | Send Message
     
    More like a gambling addiction.

     

    The good news is the bulk of professional athletes...and owners...do this. (Obviously as the athlete bets on the games the owners are betting on the athlete.)

     

    I recommend a good coaching staff.
    http://bit.ly/1kYJWd1
    1 Jun 2014, 12:46 PM Reply Like
  • Ted Bear
    , contributor
    Comments (624) | Send Message
     
    Icahn has had a stellar outperformance. It is hard to find a time in history where such outperformance has not been met with death, or jail (well, maybe Goldman Sachs excepted, but they ARE the Gubment).
    31 May 2014, 02:38 PM Reply Like
  • leopardtrader
    , contributor
    Comments (1522) | Send Message
     
    Walters probably socialize with "useful" buddies to glean out good information as a professional gambler he is. Carl is in the clear here. He is not a fiduciary of Clox even if he had asked for Walters support in his plan for the bid. Phil should be an "innocent" receiver of tips & probably greedy at that lol

     

    Any pullback in IEP on this is a buying opportunity
    31 May 2014, 06:36 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (811) | Send Message
     
    Carl Icahn vs. the Feds?!

     

    I'd probably pick the feds here.
    31 May 2014, 07:09 PM Reply Like
  • june1234
    , contributor
    Comments (3066) | Send Message
     
    I wouldn't. Carl has better lawyers that the feds. So does Phil. Besides what really will happen to him. Martha went to a country club for 5 months and got fined $30K .

     

    Phil lawyered up. He knows what he's doing. With his resources and image he'll be fine. He's more popular than the gov. too. Feds did shut down Cohens's SAC hedge fund but he still made $2.3 B in 2013 . He is allowed to run the SAC "family fund". And with his resources he will draaaag that case out for many years.
    1 Jun 2014, 03:38 AM Reply Like
  • Patent News
    , contributor
    Comments (1394) | Send Message
     
    THIS is much ado about nothing! basically he was NOT AN INSIDER in any of this. just because you buy shares does not mean you cant share info unless its INSIDER or privileged
    1 Jun 2014, 03:52 AM Reply Like
  • drax7
    , contributor
    Comments (346) | Send Message
     
    It's a witch hunt against the wealthy and Wall Street at any cost with Obama the guiding light.
    It emboldens all the agencies from the IRS, NRS, DOJ, state department, sec, state department and all the state AJ to ruin the opposition .
    1 Jun 2014, 10:47 PM Reply Like
  • Doug-
    , contributor
    Comments (491) | Send Message
     
    Any probe is a complete waste of time. Go ahead feds if you want to embarrass yourselves. Mark Cuban made you look like fools and that case was easier. This case is a "no brainer" and you will lose again.
    2 Jun 2014, 06:59 AM Reply Like
  • Seekingbetaguy
    , contributor
    Comments (263) | Send Message
     
    Who hasn't bought 100 shares of XYZ Corp based on some party chatter? Who hasn't "made millions using call options on Clorox stock"? Call options? Clorox? I couldn't have told you Clorox was still a listed company.
    3 Jun 2014, 09:51 AM Reply Like
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