Doug DeCines: Former MLB All Star Indicted For Insider Trading
Doug DeCines has been indicted for insider trading, with authorities alleging that the former MLB All Star benefited from information prior to the takeover of a medical device company in California.
The insider trading charges related to a 2008 action that DeCines took related to Advanced Medical Optics Inc. DeCines learned from a friend that Abbott Laboratories planned to pay $21 to $23 per share of the company’s stock, which at the time was $8, The Associated Press reported.
In a separate civil lawsuit last year where DeCines agreed to pay $2.5 million to the SEC, authorities noted that the tipster who alerted DeCines to the stock was James Mazzo, Advanced Medical’s former CEO.
Using that information, Doug DeCines started buying Advance Medical stock, passing along details of the takeover and stock purchase to three other friends to make up for previous investment advice that didn’t pan out.
After the takeover went through, DeCines profited about $1.3 million, court records show. The three friends who also invested made between $140,000 and close to $350,000. Each of the friends was also indicted on fraud and insider trading charges, CBS Sports noted.
The 62-year-old DeCines was charged with 42 counts of securities fraud and one count of money laundering, with each fraud charge carrying up to 20 years in prison.
Doug DeCines, who played third baseman for 15 seasons, was not the only MLB star to get caught up in the insider trading. His former teammate Eddie Murray had to pay close to $360,000 in August to settle federal civil charges after DeCines told Murray about the takeover.
