Updated December 5, 2018 - 5:09 pm
Las Vegas gambler Bill Walters, once the most successful sports bettor in the country, will remain in prison.
A federal appeals court on Tuesday dismissed Walters’ argument to overturn his prison sentence and $10 million fine resulting from his conviction in April 2017 on 10 counts of fraud and conspiracy.
Walters, whose prolific wagers over four decades helped him buy seven homes and a $20 million jet, was sentenced in July 2017 to five years behind bars for masterminding a six-year insider-trading scheme with former Dean Foods Co. Chairman Tom Davis.
Prosecutors said Walters made more than $40 million illegally trading the stock of Dallas-based Dean Foods after he gave Davis a pre-paid throwaway phone so they could discuss inside information without it being traced.
Walters’ attorneys made the case to have his conviction dismissed because a special agent of the FBI leaked confidential grand jury information to reporters about the case.
The 2nd U.S. Circuit Court of Appeals in Manhattan ruled 3-0 in denying Walters’ appeal.
“The lack of prejudice in this case is further underscored by the fact that Walters received a full and fair trial in which there was overwhelming evidence to support his conviction,” Judge Denny Chin wrote.
But, Chin wrote the FBI leaks of grand jury testimony “is in some respects more egregious than anything Walters did — the FBI supervisor took an oath to uphold the law and was acting in a supervisory capacity to discharge an important public function.”