This week, professional gambler William “Billy” Walters went to trial for allegedly using insider tips from former Dean Foods Co. chairman Thomas Davis. Walters is accused of profiting from confidential company information, gaining him more than $40 million over the span of six years.
On Tuesday, Davis testified in Federal District Court saying that he provided extensive and nonpublic information about Dean Foods to Walters despite knowing this was violation of corporate governance standards, The New York Times reported.
“I thought it would accrue to my benefit,” Davis said.
Davis and Walters reportedly met on a golf course in the 1990s, but their friendship turned to business when Davis began sharing company secrets, including Dean Foods projected earnings, expansion plans, and potential transactions.
According to Davis, he and Walters would use code words and phrases to openly speak about inside information. They referred to Dean Foods as “the Dallas Cowboys” and would say “Let’s go get a cup of coffee” when Walters wanted more information.
Walters is currently facing 10 charges, including the insider trading of Dean Foods, Dallas Business Journal reported. If convicted, he could face up to 20 years in prison.