Former Baltimore Orioles third baseman Doug DeCinces was charged with insider trading Thursday.
DeCinces, 60, made almost $1.3 million trading on advance word about a 2009 merger in the medical technology industry, the Securities and Exchange Commission alleged in a civil complaint.
He tipped three friends, including his physcial therapist, who also profited from trading on the information, the SEC said.
Without admitting or denying wrongdoing, DeCinces settled the case by agreeing to pay $2.5 million, the SEC said.
DeCinces, a one-time all star, played major league baseball from 1973 to 1987. The Orioles traded him to the California Angels in 1982, creating an opening on the team for upstart Cal Ripken Jr.
DeCinces now heads a real estate development firm in Irvine, Calif.
Beginning in late 2008, a source the SEC did not name gave DeCinces inside information about an impending takeover of Advanced Medical Optics by Abbott Laboratories, the SEC complaint said.
DeCinces bought shares of the takeover target in a series of transactions, at one point liquidating a diverse portfolio of 110 stocks to pay for his purchase, the SEC said. He placed some of the orders in accounts held in his grandchildren’s names, the SEC said.
The day the takoever was announced in January 2009, the price of Advanced Medical Optics stock surged by about 143 percent, and DeCinces sold all of his shares at a profit of $1,282,691, the SEC said.
Days before the announcement, DeCinces met California real estate lawyer Fred Scott Jackson for breakfast, and while they were meeting, Jackson used his mobile device to place a buy order for 8,500 shares, the SEC said.
Jackson and the other defendants in the case also settled without admitting or denying wrongdoing.