SEC $1.5mn Insider Trading Fine

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.


  • 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.