Former Angels baseball player Doug DeCinces and three others were indicted on insider trading charges for allegedly using non-public information to buy stock in a Santa Ana medical device company, federal authorities said Wednesday afternoon.
DeCinces, who lives in Laguna Beach, allegedly used information from a former high-ranking official of the company, Advanced Medical Optics, to buy stock prior to the announcement of a tender offer from an international medical firm, according to a 44-count indictment.
DeCinces allegedly spent about $160,000 to buy more than 90,000 shares of the stock, which earned him more than $1.3 million in profits, according to the indictment filed Wednesday afternoon in U.S. District Court in Santa Ana.
DeCinces was charged with 42 counts of securities fraud and one count of money laundering. Each of the fraud counts carries a maximum sentence of 20 years in prison, and the money laundering count carries a 10 year maximum sentence, authorities said.
In August 2011, DeCinces agreed to pay $2.5 million to settle allegations by the Securities and Exchange Commission that he made huge profits after the tender announcement in January 2009.
According to an SEC lawsuit, DeCinces made more than $1.2 million in the stock deal. DeCinces, president of an Irvine real estate development firm, agreed to the settlement without admitting or denying the allegations, the SEC said.
Also indicted were David Parker, 60, of Provo, Utah; Fred Scott Jackson, 65, of Newport Beach and Roger Wittenbach, 69, of Lutherville-Timonium, Md. Federal authorities described all three men as friends of DeCinces.
DeCinces and the others are being summoned to appear for arraignment on Dec. 17 in federal court in Santa Ana, the U.S. attorney's office said.This story was reported by Times Staff Writer Robert J. Lopez.