Las Vegas Gambler Billy Walters Is Convicted in Insider-Trading Case

  • U.S. claimed illegal tips led to tens of millions in profits
  • Defense attacked government’s star witness Davis as liar

Billy Walters was convicted of federal insider-trading charges in a case that could send the famed Las Vegas gambler to prison for years.

Jurors in Manhattan returned the verdict after hearing weeks of testimony that Walters earned $43 million over six years trading on tips from Tom C. Davis, the former chairman of Dean Foods Co. Davis, who was Walters’s friend, business partner and golfing pal of more than 20 years, was the government’s star witness.

The case was the highest profile -- and most colorful -- insider-trading trial in years. The testimony featured golfer Phil Mickelson and billionaire investor Carl Icahn, as well as a seamy world of gambling debts, stock tips delivered on burner phones and charity money used for prostitutes.

Walters was convicted of securities fraud and conspiracy.

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