Category Archives: insider trading

Sports bettor Billy Walters gets five years in prison, $10m fine for insider trading


billy-walters-five-years-insider-tradingFamed sports bettor Billy Walters has been fined $10m and sentenced to five years in federal prison for insider trading.

In April, Walters was convicted on charges of securities fraud, wire fraud and conspiracy for his role in an insider trading scheme that netted him $32m in profits while avoiding $11m in losses. On Thursday, US District Judge P. Kevin Castel called Walters “a cheater and a criminal, and not a very clever one.”

The US Attorney for the Southern District of New York charged Walters in 2016 over a series of trades involving Fortune 500 company Dean Foods based on inside information fed to Walters by Dean’s former chairman Thomas Davis, who was heavily in debt at the time. Davis, who has yet to be sentenced, testified against Walters after striking a plea deal with prosecutors.

On Thursday, Castel called Walters’ scheme “amateurishly simple,” in part due to a detailed paper trail that led prosecutors right to Walters’ and Davis’ doors. Castel also claimed that Walters’ scheme was less to do with an actual need for cash, but rather because Walters viewed acquiring riches as “a way of keeping score.”

Castel said restitution and forfeiture will be determined at a later date, but denied Walters’ bid for bail while his attorneys file an appeal. Walters was ordered to surrender to federal authorities on October 10.

Walters was a notorious figure in Nevada sportsbook and international online sportsbook circles, to the point that 60 Minutes did a profile on his betting activity and tout services illegally piggybacked on his name to boost their business.

Walters’ attorneys had sought a one-year prison sentence, claiming that the 71-year-old suffered from poor health, but prosecutors filed papers last week noting that Walters had made 77 visits to a San Diego golf club in the past couple years, and played three rounds in just the last two weeks. “Since Walters’ age and health concerns are not so serious as to keep him off the links, they should not provide a basis to keep him out of jail.”

Walters is/was good friends with pro golfer Phil Mickelson, who, like Walters, is known to enjoy a wager. Mickelson was part of the original investigation into Walters’ trading activity but Lefty managed to wriggle free of prosecutors’ grip after agreeing to repay slightly more than $1m in profit and interest on the trades he made based on discussions with Walters.

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Securities regulator miracles why Amaya ex-CEO Baazov fails to show at listening to


Oct 6, 2016

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amaya-baazov-insider-trading-probe-tribunalQuebec’s securities regulator continues to paint previous Amaya Gaming CEO David Baazov (pictured) as the architect of a key insider buying and selling ring.

On Wednesday, the initial of two days of hearings by a tribunal of the Autorité des marchés financiers (AMF) received underway in Montreal. The hearings are probing the inventory buying and selling activity of 12 people today that the AMF claims earned income of $1.5m from within info that originated with Baazov.

Preliminary hearings in September uncovered that the AMF’s circumstance against the 12 was mainly circumstantial, but AMF attorney Philippe Levasseur reported on Wednesday that this was par for the program. “Direct proof just does not transpire,” incorporating that the AMF lacks the authority to faucet people’s phones.

The AMF did attain phone information and email messages that show a pattern of get hold of among Baazov and some of the 12 people today, including his more mature brother Josh/Ofer Baazov, related to transactions dating again to Amaya’s 2011 acquisition of software program organization Cryptologic.

A single e mail displays David forwarding Josh a be aware from Amaya adviser Cannacord speaking about the pending Cryptologic deal. David extra his possess be aware inquiring Josh for “support,” which the AMF maintains is code for boosting Amaya’s inventory benefit to make the company’s bid for Cryptologic a truth. Since Josh was not an Amaya worker, the AMF claims David broke securities regulation by failing to disclose this e mail to regulators.

Baazov’s attorney Sophie Melchers presented proof of public domain rumors predating the various bargains that she claimed could have motivated the 12 people today to make their inventory trades.

Levasseur rejected Melchers’ assert, pointing out the importance of the jumps the stocks built pursuing the trades. “If the inventory moves massive, it displays the current market did not know about the deal.”

The AMF has accused Baazov of obtaining money kickbacks from the people today who benefited from the trades. On Wednesday, Levasseur expressed puzzlement with Baazov’s absence from the tribunal, contacting him “the only particular person who could have contradicted” the AMF’s assertions.

Baazov is not among the the 12 people today getting probed, whilst he is the issue of a independent criminal investigation of insider buying and selling involving Amaya’s $four.9b acquisition of the Rational Group, the mother or father enterprise of PokerStars, in 2014.

Baazov pled not responsible to the criminal expenses in May well, but resigned as Amaya CEO in August, just weeks right before the AMF’s kickback allegations turned public. The AMF tribunal will reconvene on Thursday.



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Athletics betting whale Billy Walters charged with conspiracy, securities fraud


May perhaps 19, 2016

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billy-walters-insider-trading-phil-mickelsonRenowned sports activities bettor Billy Walters has been charged with insider investing while professional golfer Phil Mickelson has agreed to forfeit nearly $1m in revenue acquired from his possess shady trades.

On Thursday, the United States Lawyer for the Southern District of New York accused Walters of applying privileged details to execute trades in between 2008 and 2014 involving Fortune 500 company Dean Foodstuff. The trades allegedly netted Walters realized and unrealized gains of $32m while staying away from losses worth $11m.

The SDNY alleges that Walters (pictured, powering bars) was offered this insider information by Dean’s former chairman Thomas Davis, who pled responsible earlier this 7 days to securities fraud and perjury prices and is cooperating with prosecutors. Walters allegedly offered Davis with capital for joint organization ventures and nearly $1m in financial loans that Davis “largely did not repay.”

At the time of the financial loans, Davis was deeply in financial debt to credit card companies, the Inside Income Services, a $550k obligation to an investment fund he managed and a $100k ‘loan’ from a charitable organization he managed to go over a Las Vegas on line casino marker.

Walters, who was arrested Wednesday at a vacation resort in his hometown of Las Vegas and will be arraigned Thursday afternoon, is facing prices of conspiracy, securities fraud and wire fraud. The prices carry a maximum penalty of twenty a long time in prison and a fine of $5m, or 2 times the gross gain or loss from the illegality. The Securities Trade Commission (SEC) has filed a civil assert from both of those Walters and Davis.

US Lawyer Preet Bharara (of Black Friday infamy) explained Walters experienced “traded in progress of fantastic information and negative information alike” dependent on the nonpublic Dean information offered by Davis. Bharara explained Walters offered Davis with a pay as you go cell cellphone with which to communicate the inside of information on Dean, which Walters advised Davis to refer to as the “Dallas Cowboys” when speaking by way of this cellphone.

On 1 event in 2008, Walters met with Davis, right after which Walters acquired nearly 4m shares of Dean. A couple of days afterwards, the company revised upwards its quarterly earnings, prompting Dean shares to soar and netting Walters a $6m income.

On a different event in 2010, Davis educated Walters that Dean would fail to meet analysts’ earnings forecasts, top Walters to promote 1.5m Dean shares, staying away from $seven.3m in losses when Dean inventory tumbled adhering to the public launch of its quarterly report.

Walters was identified as the subject of a securities investigation in May perhaps 2014, along with Mickelson, with whom Walters shares both of those a adore of golfing and wagering. Mickelson (pictured, not powering bars) was not charged by the SDNY but was named as a aid defendant in the SEC’s civil assert.

Mickelson has reached a deal with the SEC that requires him to return the $931k income he produced (moreover $105k fascination) on Dean trades in the days adhering to a July 2012 cellphone dialogue with Walters. The SEC submitting notes that Mickelson owed Walters a wagering financial debt at the time of their dialogue. The financial debt was repaid in September 2012 applying proceeds from Mickelson’s Dean trades.



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