Former Angel Doug DeCinces Charged With Insider Trading
LOS ANGELES (CBS) - The Securities and Exchange Commission has charged former Angels infielder Doug DeCinces and three of his associates with insider trading preceding a buyout of Abbott Laboratories (ABT).
DeCinces is required to pay $2.5 million in order to settle the charges against him. According to a complaint filed by the SEC with the U.S. District Court for the Central District of California, DeCinces and his associates became the benefactors of illegal profits exceeding $1.7 million following Abbott Laboratories announced plans to acquire Advanced Medical Optics Inc.
DeCinces is alleged to have received confidential information vital to the acquisition process from an employee at Advanced Medical, and purchased upwards of 83,700 shares through a number of brokerage accounts. Immediately following the public announcement of the January 12, 2009 merger, DeCinces sold all of his shares for $1.2 million in profit.
The SEC's complaint also alleges DeCinces passed on information to three associates who then traded on the illegal information. The associates have also agreed to settle the charges.
DeCinces played 15 seasons with the Baltimore Orioles and California Angels. In 1982 he hit .301 with 30 home runs and 97 RBI's and finished third in the MVP voting for the Angels. He also threw out the first pitch on Wednesday before the Angels game versus the Minnesota Twins. He wasn't immediately available for comment.
