Former MLBer Doug DeCinces Had Less Success With Insider Trading Charges Than Baseball
Doug DeCinces, who played primarily for the Orioles and Angels from 1973-1987, was a pretty good baseball player. He hit 237 career home runs during a time when fewer home runs were hit, did it playing a position (third base) that doesn't generally breed the greatest hitters, and played third base well. He made an All-Star team. He finished third in MVP voting one year. He had a fine 15-year career, one to be proud of. What not to be so proud of: he just got charged with insider trading.
According to the Securities and Exchange Commission, DeCinces got a too-good tip back in late 2008 about Abbott Laboratories, a pharmaceutical company, acquiring medical supply company Advanced Medical Optics. DeCinces acted on it, buying tens of thousands of shares of Advanced Medical Optics stock, and passing the info along to a few others as well. Sure enough, when news of the acquisition hit the general public the next month, Advanced Medical Optics stock soared, DeCinces pocketed nearly $1.3 million, and his friends he tipped off made themselves a few hundred thousand more.
Believe it or not, the SEC wasn't thrilled when it caught wind of this, and fined DeCinces $2.5 million. DeCinces agreed to pay up, while apparently neither admitting to nor denying the SEC's allegations. However, paying a multimillion-dollar penalty - over $1 million more than you made from the allegedly illegal investments - does not suggest someone very confident that he would have been exonerated by the facts. Considering the curiously perfect timing of DeCinces' profits...understandable.
A few years ago, mlb.com published a story on DeCinces' post-baseball endeavors. He started a real estate development company. He owned a golf course. He operated industrial parks and restaurants. He raised funds for a children's foundation and, all in all, seemingly managed to carve out a nice niche for himself. The headline for that story: "DeCinces enjoying life as businessman." A little too much, apparently.
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