FORMER ANGELS STAR INDICTED ON INSIDER TRADING CHARGES

 

Former Angels and Baltimore Oriole allstar Doug DeCinces and three others were indicted on insider trading charges after authorities said they used and profited from information prior to take over of an Orange County medical device company.

Doug DeCinces was charged with 42 counts of securities fraud and one count of money laundering.  Each of securities fraud counts carries a maximum sentence of 20 years in prison.

In 2008, DecCinces was told by a close friend and officials at Advanced Medical Optics Inc.  that Abbott Laboratories planned to pay $21 to$23 per share of the company’s stock, prosecutors said.

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

Once Abbott’s offer was made public, DeCinces shares and profited about $1.3 million, court documents show.  Abbott acquired Advanced Medical Optics in January 2009.

DeCinces three friends also each brought and then sold Advanced Medical’s stock and made $140,000 to nearly $350,000.  Each of the friends were indicted on insider trading and fraud charges.

The Securities and Exchange Commission previously filed a civil lawsuit against DeCinces that was settled last year when the former leaguer agreed to pay $2.5 million.

Doug DeCinces is set to appear in court on December 17