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Survey: Is Carl Icahn In Trouble Following The FBI And SEC Probe?

Survey: Is Carl Icahn In Trouble Following The FBI And SEC Probe?

Rumors continue to circulate around the federal insider-trading investigation involving  billionaire investor Carl Icahn, golfer Phil Mickelson and gambler Billy Walters.

The Investigation

On Friday, The Wall Street Journal broke the news  -- that the Federal Bureau of Investigation and the Securities and Exchange Commission are looking to see if Mickelson and Walters traded shares of Clorox (NYSE: CLX), on non-public information from Carl Icahn.

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U.S. authorities are reportely looking hard at Walters' and Mickelson's trading patterns --  specifically stock trades in 2011 following Carl Icahn's investment in Clorox. According to the WSJ, “The FBI and SEC are examining whether Mr. Walters on at least one occasion passed a tip on to Mr. Mickelson.”

Authorities are also examing whether Icahn told Walters, and therefore Mickelson, about the takeover bid prior to his move.

“The probe is looking at large option trades in the days before Icahn's $10.2 billion offer for Clorox in July 2011," the Journal added, "as well as trading patterns related to Dean Foods.”

Citing an unidentified public official, the Associated Press reported, “Mickelson and Walters placed their trades about the same time in 2011.”

Pleading Innocent

On March 30, Carl Icahn said, “We do not know of any investigation. We are always very careful to observe all legal requirements in all of our activities.”

In a statement provided to CNN on Saturday, Mickelson commented, “I have done absolutely nothing wrong.”

The golfer continued, “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.”


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