Ex-CEO charged in ballplayer's insider trade

AP News
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Posted: Sep 24, 2014 11:03 PM

SANTA ANA, Calif. (AP) — Federal prosecutors say the former CEO of a Southern California medical device company has been indicted on allegations that he shared insider trading secrets with former Baltimore Orioles All-Star Doug DeCinces.

The U.S. attorney's office says James Mazzo, former CEO of Advanced Medical Optics Inc., was indicted Wednesday on 13 insider trading charges related to a case previously filed against DeCinces.

Federal prosecutors say Mazzo shared information in 2008 with his friend, DeCinces, that the company was going to be bought by Abbott Laboratories for more than double the stock price.

Mazzo is also charged with 13 counts of tender offer fraud and one of securities fraud.

Mazzo's attorneys released a statement saying he flatly denies the charges that they call "absurd."

The 64-year-old DeCinces has pleaded not guilty.