The SEC has charged former professional baseball player Doug DeCinces and three others with insider trading ahead of a company buyout. DeCinces, a third baseman, played for fifteen seasons (1973 - 1987) in the major leagues for three different teams, including nine years with the Orioles and six years with the California Angels. The SEC charged that DeCinces and his associates made more than $1.7 million in illegal profits when Abbott Park, Ill.-based Abbott Laboratories Inc. announced its plan to purchase Advanced Medical Optics Inc. through a tender offer.
DeCinces agreed to pay $2.5 million to settle the SEC’s charges, and the three others also agreed to settlements.
The SEC's complaint alleges that DeCinces received confidential information about the acquisition from a source at Santa Ana, Calif.-based Advanced Medical Optics. He then began purchasing shares of Advanced Medical Optics in several brokerage accounts, buying more throughout the course of the impending transaction as he received updated information from his source. During the period, DeCinces also illegally tipped three associates who traded on the confidential information – physical therapist Joseph J. Donohue, real estate lawyer Fred Scott Jackson, and businessman Roger A. Wittenbach. See more....
http://www.sec.gov/litigation/litreleases/2011/lr22062.htm
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