Thursday, August 4, 2011
Yesterday it was the ex-son-in-law of Hugh Hefner. Today it's former baseball player Doug DeCinces, who is settling SEC insider trading charges. According to the SEC's complaint, DeCinces and associates made more than $1.7 million in illegal profits when Abbott Laboratories Inc. announced its plan to purchase Advanced Medical Optics Inc. through a tender offer. The SEC alleges that DeCinces received confidential information about the acquisition from a source at Advanced Medical Optics. DeCinces immediately began to purchase 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 this time, 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.
DeCinces agreed to pay $2.5 million to settle the SEC’s charges, and the three others also agreed to settlements.