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Former Dean Foods chairman Tom Davis and sports bettor William “Billy” Walters have been charged with insider trading, federal prosecutors said on Thursday.

The indictment alleges that between 2008 and until about 2014, Mr Davis was part of a scheme involving an investment company in New York in which he provided Mr Walters with material including non-public information about Dean Foods and Darden Restaurants, write Kara Scannell and Mamta Badkar.

Mr Walters was arrested last night at a resort in Las Vegas and is in custody.

The government alleged that Mr Walters used that information to illegally trade shares in Dean Foods and Darden.

Mr Walters along with Mr Davis, who abruptly resigned from Dean Foods last year, face charges of conspiracy, securities fraud and wire fraud.

Mr Davis pleaded guilty to insider trading and perjury charges on Monday. The charges against him were unsealed today. “Mr Davis is pleased to be assisting in the government’s investigation,” said Chris Clark, his attorney.

Barry Berke, attorney for Mr Walters, said:

Bill Walters is a true American success story, whose extraordinary accomplishments as a lawful sports gambler have been widely recognized and lauded. Mr. Walters’ renowned work ethic and many other talents also have helped him achieve great success in business, investing and philanthropy.

Mr. Walters and his counsel look forward to his day in court where it will be shown that the prosecutors’ accusations are based on erroneous assumptions, speculative theories and false finger-pointing.

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