Walters Trial Dragging On

The New York trial of sports bettor Billy Walters continues to drag on. Walters is accused of insider trading, a charge he denies. At the heart of the charges is former Dean Foods Chairman Tom C. Davis and if he passed on insider information to Walters. Davis is known to be a heavy gambler, and reportedly lost $150,000 on one hand of blackjack.

The government contends Walters made over $40 million over a six-year period acting on information received from Davis. Prosecutors say Walters repaid the favor by lending Davis $1 million after Davis’ gambling habits got the best of him.

Gregg Engles, founder of Dean Foods, testified he was aware that Davis and Billy Walters knew each other, but that was it. He is key to the government’s case and spent two full days and part of a third on the witness stand. A key was Dean spinning off WhiteWave, which made milk from almonds and soy. When the announcement was made in 2012, shares of Dean Food Co. jumped 41 percent. Walters made more than $17 million by acting before the announcement was made. Barry Berke, Walters’ attorney, countered by saying Dean had publicly discussed spinning off WhiteWave with analysts and investors.

Walters is officially charged with conspiracy and securities fraud and court documents suggest that Davis is cooperating with the government.

Phil Michelson is listed as a witness for Walters, as the two are golfing buddies. But it is unknown if Michelson will actually be called to testify. “Lefty” found himself the target of the Securities and Exchange Commission. He made close to a $1 million on a tip from Walters involving Dean Foods. He was never charged and agreed to pay back his profits.

In his opening statement, Berke said passing on insider trading to Mickelson was ridiculous.

“If you’re Bill Walters and somebody’s giving you inside information, the last thing you would do is give it to Phil Mickelson,” he told jurors.