Former Orioles and Angels star Doug DeCinces was found guilty of insider trading on Friday following a trial of two months where the ex-baseball player had been accused of the illegal use of information that was non-public from a friend who was a CEO to help net him $1.3 million.
DeCinces, who at one time was the Orioles and Angels starting third baseman, had been accused of being given insider information by James Mazzo, a neighbor in Laguna Beach who was the owner of Advanced Medical Optics.
DeCinces, said federal prosecutors then sent the insider information to David Parker a friend as well as other family members of his and some acquaintances.
The jury took four days to deliberate prior to finding the former baseball player guilty on 14 felony counts. The jury convicted Parker of three felonies.
Each of the counts carries a possible maximum 20-year sentence in a federal prison.
DeCinces, who is 66, stared at the jury and shook his head as the verdicts of guilty were read out. Inside the courtroom were members of the DeCinces family and his friends.
On another 15 counts DeCinces was charged with, the jury was deadlocked.
While the jurors were quite convinced DeCinces and Parker, both used information that was non-public for their personal financial benefit, they could not agree if Mazzo, actually had provided the two with the information.
A mistrial was declared by the judge in the trial for Mazzo and it is unknown whether federal prosecutors plan to retry him.
An attorney representing DeCinces said he is planning a request for another trial, although he did not outline the argument he had for doing do.
The judge granted freedom to DeCinces as well as Parker pending their sentencing after each of the men promised they would return for sentencing.
Most of this trial focused on the trades the defendants had made before Advanced Medical Optics was acquired by Abbott Laboratories. The merger in 2008 came as AMO, which made the LASIK surgery equipment, struggled to fix falling revenue and increased debt.
Prosecutors had told the court that DeCinces had been tipped by Mazzo about an impending merger of the two companies. Abbot in the end agreed to acquire AMO at four times the price of stock.