Pro golfer Phil Mickelson is named in an official complaint filed by the Securities and Exchage Commission, which claims he was involved insider trading.
The SEC claims Mickelson spun a nearly $1 million profit on Dean Foods stock he held for only a week on a tip from professional gambler William "Billy" Walters.
Mickelson bought a $2.4 million position in three accounts upon receipt of text messages and other communication with Walters, the SEC alleged. Walters was arrested late Wednesday and released on bond. Walters allegedly received the insider information from former Dean Foods chairman Thomas Davis.
The SEC believes both men owed Walters money related to sports gambling.
Mickelson was not considered by the SEC to be a frequent trader, and these were his first Dean Foods purchases. Mickelson made a profit of approximately $931,000 from the stock. He also has a career earnings of $79.35 million according to Forbes.
On Thursday, Mickelson's attorney said all the money made on trade would be returned.
Mickelson claims in the statement to be "vindicated" because the SEC did not allege he broke securities laws.
"He has no desire to benefit from any transaction that the SEC sees as questionable," the statement read.
"Phil understands and deeply respects the high professional and ethical standards that the companies he represents expect of their employees, associates and of Phil himself. He subscribes to the same values and regrets any appearance that, on this occasion, he fell short. He takes full responsibility for the decisions and associations that led him to becoming part of this investigation."
The SEC referred to Mickelson in court documents as a relief defendant, which means he is accused of receiving property obtained illegally but is not directly accused of wrongdoing.
Mickelson's attorney said no sponsors are considering breaking their current agreements with one of the best-known players on the PGA Tour.
In 2014 attorney Gregory Craig defending Mickelson when he was accused of insider trading of Clorox stock in an entanglement that also included Walters and investor Carl Icahn.
At the time Mickelson proclaimed his innocence without discussing either case.
"I have done absolutely nothing wrong," Mickelson said in a statement just before the 2014 U.S. Open. "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."