Former Baltimore Orioles all-star and 15-year MLB vet Doug DeCinces and three others were indicted Wednesday on insider trading charges for using and profiting from information prior to the takeover of an Orange County medical device company, authorities said.
According to the AP, DeCinces, 62, was charged with 42 counts of securities fraud and one count of money laundering. Each of the securities fraud counts carries a maximum sentence of 20 years in prison. DeCinces is scheduled to appear in court Dec. 17.
In 2008, DeCinces was told by a close friend and official at Advanced Medical Optics, Inc. that Abbott Laboratories planned to pay $21 to $23 per share of the company’s stock, prosecutors said. At the time, Advanced Medical Optics was trading about $8 a share. DeCinces began buying Advance Medical’s stock, based on that information, and passed along the takeover details to three friends. Once Abbott’s offer was made public, DeCinces sold his newly purchased shares and profited about $1.3 million, court documents show.
DeCinces former teammate Eddie Murray who agreed in August to pay nearly $360,000 to settle federal civil charges. Federal investigators said DeCinces also told Murray about the impending takeover, although Murray neither admitted nor denied wrongdoing.