FBI Agent Leaked Info From Billy Walters, Phil Mickelson Insider Trading Probe

• FBI agent scrutinized for divulging information about insider trading case to media outlets
• Golfer Phil Mickelson and activist investor Carl Icahn were later cleared of any wrongdoing
• Famed professional sports bettor Billy Walters was ultimately charged in the case
• Walters asks Judge in his case if agent should be punished, wants prosecutors to show more of their hand

U.S. prosecutors this past Friday confirmed that an FBI agent had leaked critical information to journalists regarding an insider trading probe. The agent in question is currently under Justice Department scrutiny as a result. Prosecutors had initially denied any leaks occurred but have since changed course.

The investigation involved a famed Las Vegas sports gambler, Billy Walters, golf pro Phil Mickelson and activist investor Carl Icahn.  The later two were ultimately cleared of any wrongdoing.  Icahn’s name was frequently brought up during US President-Elect Donald Trump stump speeches as someone who could help improve trade deals, though Icahn later stated he had no plans to join the Trump cabinet.

How The Investigation Unfolded

In May of 2014 it was revealed that federal investigators were in the midst of a probe to determine fir Mickelson and Walters may have traded illegally on private information provided by Icahn about his investments in public corporations.

According to the New York Times at the time, the investigation centered on suspicious trades in Clorox Co by Walters and Mickelson as Icahn was trying for access to the board of the consumer products company in 2011.

Investigators were also looking into trades that Mickelson and Walters made related to Dean Foods Co., the nation’s largest milk producer.

"I am very proud of my 50-year unblemished record and have never given out insider information," Icahn said back then.

Mickelson issued a statement, "I have done absolutely nothing wrong. I have cooperated with the government in this investigation and will continue to do so.  I wish I could fully discuss this matter, but under the current circumstances it's just not possible.”

Walters, one of the most feared sports bettors in the world, would eventually be charged with insider trading in May of this year.

The indictment alleges Walters was given inside information by the chairman of Dean Foods. According to the indictment, that information allowed Walters to earn more than $40 million over a five-year period.

Businessman Tom Davis was also charged, but is cooperating with prosecutors.

Scroll Down For More..

Billy Walters seen leaving the court house wants prosecutors to "show their hand" regarding what FBI agent disclosed

Rogue FBI Agent

Bloomberg News reports that Walters has requested that the judge in his case determine whether prosecutors or Federal Bureau of Investigation agents were behind the leaks and should be punished.

“The agent admitted that he disclosed confidential information about the investigation to the New York Times and Wall Street Journal reporters who wrote the articles,” Assistant U.S. Attorney Joan Loughnane wrote to the judge about the Walters case.

Jim Margolin, a spokesman for Manhattan U.S. Attorney Preet Bharara, declined to comment on the government’s letter. Mickelson wasn’t charged in the case.

The agent appearing in court December 6 “admitted that he was the significant source of confidential information leaked to reporters,” prosecutors said. The agent also said he’d concealed those communications from the U.S. Attorney’s office and FBI colleagues.

Walters is scheduled to appear in court for a hearing this week.

The agent has yet to be identified and is no longer cooperating with prosecutors without his attorney.

Barry Berke, a lawyer for Walters, said in a court filing Friday that prosecutors should be required to disclose the report to the defense.

“Now that the government’s initial position has proven to be untrue, the government seeks to deviate dramatically from the procedure by providing the new results of its investigation to the court” in a confidential report, he wrote. “This approach makes no sense, is contrary to bedrock principles in a criminal case and, not surprising, finds no support in the law.”

The FBI agent’s mishandling of information could come in handy for Walters who, as a successful sports bettor, certainly knows the odds of winning an insider trading case initiated by Bharara are not very good.  Since August 2009, the Manhattan U.S. Attorney office has convicted 81 people of insider trading, either at trial or via guilty pleas, with no acquittals.

Bloomberg notes that Walters has been seeking to force prosecutors to show more of their hand ahead of his insider-trading trial.

- Alejandro Botticelli, Gambling911.com