APNewsBreak: DeCinces indicted for insider trading

Associated Press Modified: November 28, 2012 at 8:46 pm •  Published: November 28, 2012
Advertisement
;

LOS ANGELES (AP) — Former Baltimore Orioles all-star Doug DeCinces and three others were indicted Wednesday on insider trading charges involving the use of information prior to the takeover of a medical device company in California, authorities said.

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 a share for the company's stock, prosecutors said. At the time, Advanced Medical Optics was trading for about $8 a share.

DeCinces began buying Advance Medical stock based on that information and passed along the takeover details to three friends because he wanted to make up for previous investment recommendations that had gone bad, prosecutors said.

When Abbott's offer was made public, DeCinces sold his newly purchased shares and profited about $1.3 million, court documents show. Abbott acquired Advanced Medical Optics in January 2009.

DeCinces' three friends each bought and sold Advanced Medical stock and made anywhere from $140,000 to nearly $350,000, authorities said.

Also indicted on insider trading charges were David Parker, 60, of Provo, Utah; Fred Scott Jackson, 65, of Newport Beach, and Roger Wittenbach, 69, of Lutherville-Timonium in Maryland.

DeCinces, 62, was charged with 42 counts of securities fraud and one count of money laundering. Each of the fraud counts carries a maximum sentence of 20 years in prison. DeCinces is scheduled to appear in court on Dec. 17.

"To put it mildly, we do not agree with the decision to bring a criminal case against Doug DeCinces," said Gordon Greenberg, DeCinces' attorney. "But the proper place to have this resolved is in the courtroom and not on the courthouse steps."



Trending Now


AROUND THE WEB

  1. 1
    10 Most Popular Wedding 'First Dance' Songs
  2. 2
    Psychologists Studied the Most Uptight States in America, and Found a Striking Pattern
  3. 3
    Facebook Post Saves Drowning Teen
  4. 4
    Saturday's front page of the New York Times sports section is simple: LeBron James and transactions
  5. 5
    The 19th-century health scare that told women to worry about "bicycle face"
+ show more