DeCinces Faces Criminal Charges on Advanced Medical TradingThursday, November 29, 2012
Former major league baseball player Doug DeCinces was one of four persons indicted Wednesday on criminal charges stemming from accusations of insider trading related to Santa Ana-based Advanced Medical Optics Inc.’s sale to Abbott Laboratories in 2009.
DeCinces faces 42 counts of securities fraud in addition to one count of money laundering. He is scheduled to appear in court on Dec. 17.
Prosecutors allege that DeCinces learned from a friend that Abbott Laboratories would pay between $21 and $23 a share for Advanced Medical’s stock, which was trading for about $8 a share at the time.
DeCinces bought Advanced Medical shares based on the information, according to prosecutors, who also said he passed the tip along to three friends.
The others indicted on Wednesday are David Parker of Provo, Utah; Fred Scott Jackson of Newport Beach, a partner at the law firm of Jackson DeMarco Tidus Peckenpaugh in Irvine; and Roger Wittenbach of Lutherville-Timonium in Maryland.
Prosecutors contend that DeCinces made about $1.3 million on the sale of his Advanced Medical shares after Abbott’s offer became public.
DeCinces already has paid $2.5 million to settle a prior civil lawsuit over insider trading allegations made by the U.S. Securities and Exchange Commission.
The lawsuit included a contention that James Mazzo--who was Advanced Medical’s CEO and now serves as president of Abbott Medical Optics, as the business is now called--is the person who told DeCinces about the 2009 deal.
Mazzo is facing an SEC lawsuit but no criminal charges. His attorney has said Mazzo will be fully exonerated after a review of the evidence.
DeCinces played in the major leagues for 15 years, and had stints with the California Angels--now called the Los Angeles Angels of Anaheim--as well as the Baltimore Orioles and St. Louis Cardinals. He currently the head of a real estate development firm in Orange County.