On Nov. 13, SEC levied $1.5mn fine to medical firm insider trading.
- Insider trading charges filed on James Mazzo CEO of Advanced Medical Optics.
Alleged Violations
- Mazzo and Abbott Laboratories were exploring the potential acquisition of AMO.
- Allegedly tipped friend, former professional baseball player, Douglas DeCinces.
- On multiple occasions Mazzo gave DeCinces, information about the acquisition.
- DeCinces bought AMO securities, after Mazzo reported progress of the merger
and tipped friends, including former Baltimore Orioles teammate, David Parker. - DeCinces's obtained $1.3mn on trades, and the tippees obtained another $1mn.
Settlement
- Mazzo to pay a civil penalty of $1.5mn and a five-year officer-and-director bar.
- DeCinces and four of his tippees have already settled the Commission's insider
trading claims against them and the SEC's litigation against Parker is continuing.
