Some years ago, The New York Times and Wall Street Journal published some fun little stories about passing some tidbits of material non-public information on the greens and fairways. These were especially fun because the beneficiaries of these tips were Phil Mickelson and a professional gambler named Billy Walters, and even more so because the alleged tipper may have been none other than Carl Icahn.
These reports did not make Icahn very happy. But they arguably made Walters even more unhappy, because while Icahn was eventually cleared of wrongdoing, Walters went to trial and then jail for it, a series of events set in train by those articles, which were themselves set in train by a chatty FBI agent. And as far as Billy Walters is concerned, that means he shouldn’t be a convicted insider-trader anymore.
Famed sports gambler William “Billy” Walters filed a lawsuit Thursday accusing a former Federal Bureau of Investigation agent of leaking information to reporters that he claims interfered with his right to due process…. In the lawsuit, Mr. Walters says that Mr. Chaves leaked confidential information to The Wall Street Journal and the New York Times as a way to further the federal investigation. Officials at the FBI and the U.S. attorney’s office for the Southern District of New York, which prosecuted the case, were aware of pending articles in the newspapers but didn’t stop the alleged leaks, according to the lawsuit.