Former Baltimore Orioles’ Doug DeCinces indicted in insider trading case - MLB News
Baltimore Orioles’ former third baseman Doug DeCinces was indicted along with three others on charges of insider trading, making use of information before taking over a medical device company according to authorities.
Others indicted in the case Roger Wittenbach of Lutherville-Timonium in Maryland, David Parker of Provo Utah and Fred Jackson of Newport Beach.
Doug DeCinces played in the Major League between 1973 and 1987. The Burbank, California native was with the Baltimore Orioles until 1981 and represented a total of three Major League teams. He was a part of the All-Star team in 1983 and also won a Silver
Slugger Award in 1982. His Major League career concluded in 1987.
In 2008, Doug DeCinces came to know through an official of Advanced Medical Optics Inc., also a friend of his that Abbott Laboratories planned on paying $21 to $23 per share, which were at the moment being traded for eight dollars apiece.
The information was shared with three friends by the 62-year-old former All-Star to make up for a previous business deal that had gone bad. The company was purchased by Abbott in January of 2009.
It is believed that Doug earned a profit of around $1.3 million as per court documents in January 2009. The other made a profit of between $140,000 and $350,000.
DeCinces will appear in court on December 17, 2012 and face 42 counts of securities fraud and a single count of money laundering. If the charges are proven, Doug could be heading to the slammer for a long time as each count carries up to a maximum of 20
years.
Gordon Greenberg, the Attorney for Doug said that his client will fight all charges leveled against him. "To put it mildly, we do not agree with the decision to bring a criminal case," Greenberg said.
In August, Doug and the other three men agreed to pay $3.3 million to settle separate law suits with Securities and Exchange Commission without admitting to or denying any wrong doing. It was alleged by the SEC that DeCinces was informed by James Mazzo about
the future deal. Mazzo’s lawyer maintains that his client denies any such wrong doing and said, "never disclosed material, nonpublic information to anyone."
Eddie Murray, a Baseball Hall of Fame inductee paid $358,151 to settle the matter in August, without any confessions. The SEC alleged that he also was informed about the situation by Doug DeCinces. Neither James Mazzo nor Eddie Murray was charged in the
criminal indictments on Thursday.
The main proceedings of the case will begin in the mid of December. In case the allegations are proven in a court of law, it will be a sad day for the game of baseball as one of its own will be guilty of a serious wrong doing.
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