Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Friday, August 17, 2012

Former Baseball Player Eddie Murray Settles Insider Trading Charges with SEC

Earlier the week the SEC filed fraud charges against a college football coach, allegin he ran a Ponzi scheme.  Today it accused a former professional baseball player, Eddie Murray, of insider trading.  Murray agreed to settle the SEC’s charges by paying $358,151.

Last year the SEC accused former professional baseball player Doug DeCinces and three others of insider trading on confidential information ahead of an acquisition of Advanced Medical Optics Inc.  DeCinces agreed to pay more than $3.3 million to settle the SEC’s charges.  Today the agency charged the source of those illegal tips about the impending transaction – DeCinces’s close friend and neighbor James V. Mazzo, who was the Chairman and CEO of Advanced Medical Optics. The SEC also is charging two others who traded on inside information that DeCinces tipped to them – DeCinces’ former Baltimore Orioles teammate Eddie Murray and another friend David L. Parker, who is a businessman living in Utah.  The SEC alleges that Murray made approximately $235,314 in illegal profits after Illinois-based Abbott Laboratories Inc. publicly announced its plan to purchase Advanced Medical Optics through a tender offer.

The SEC’s case continues against Parker and Mazzo, the latter of whom was directly involved in the tender offer and tipped the confidential information to DeCinces along the way.

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