Former Oriole Player Indicted for Securities Fraud
A federal grand in California indicted former Baltimore Orioles third baseman Doug DeCinces, along with three friends, for securities fraud.
The 62-year-old DeCinces is the CEO of a real estate development firm in Irvine, Calif. Prosecutors claim he used insider knowledge to profit on the stock of Advanced Medical Optics Inc., says a recent article in the Baltimore Sun.
A highly placed source at Advanced Medical told DeCinces the company, then publicly traded, was about to be acquired by Abbott Laboratories. With this insider information, DeCinces then purchased 90,700 shares of Advanced Medical’s stock, then worth $8 per share. After Abbot Laboratories bought Advanced Medical, the stock price surged to $22 per share, which allowed DeCinces to make a $1.3 million profit.
DeCinces now faces 42 counts of securities fraud: 21 insider trading counts and 21 counts of tender offer fraud. There is also one money-laundering count, claimed prosecutors.
This indictment is just the latest of DeCinces’ legal woes connected with the Advanced Medical buyout. In 2011, DeCinces agreed to pay $2.5 million to settle a civil case with the Securities and Exchange Commission. However, he didn't admit to any wrongdoing as part of the settlement.
Do you believe you are a victim of securities fraud? Call Sokolove Law today to learn more about how we might be able to help you recover your losses.