URGENT >> BULLETIN >> MOVING: Former Major League Baseball All-Star Doug DeCinces Charged With Insider Trading; Attorney, Physical Therapist And Businessman Who Knew Longtime Third Baseman Charged In Same Case

URGENT >> BULLETIN >> MOVING: Former Major League Baseball star Doug DeCinces, who threw out the honorary first pitch last night at a game between the Los Angeles Angels of Anaheim and the Minnesota Twins, today was charged with insider trading by the SEC.

Also charged in the civil case were attorney Fred Scott Jackson, 65, of Newport Beach, Calif.; Joseph J. Donohue, 49, a physical therapist who resides in Trabuco Canyon, Calif.; and Roger A. Wittenbach, 69, a businessman in Lutherville- Timonium, Md.

DeCinces, a third baseman who retired from the big leagues in 1987, spent 15 seasons in the majors, mostly for the Baltimore Orioles. He was an American League All-Star in 1983, and hit 237 career homers. He also played for the Angels and the St. Louis Cardinals, driving home nearly 900 runs during the course of his long and successful baseball career.

But the SEC said today that DeCinces, 60, began to drive home illegal profits from insider trading when he came into possession of material, nonpublic information that Abbott Laboratories Inc. was acquiring Advanced Medical Optics Inc. through a tender offer in 2008.

DeCinces shared the information with the other charged defendants, putting each of them in position to profit illegally, the SEC charged. DeCinces bought 83,700 shares of Advanced Medical ahead of the acquisition news, and allegedly “sold all of his shares for $1.2 million in profits.”

“Time and again, we see reputable people engaging in insider trading and risking their good names in order to enrich themselves and those around them,” said Daniel M. Hawke, chief of the SEC Division of Enforcement’s Market Abuse Unit and director of the Philadelphia Regional Office. “People need to understand that we are watching for suspicious trading activity, and they will pay a heavy price when we catch them insider trading.”

Donohue made $75,570 on the illegal tip, while Jackson made $140,259, the SEC charged. Meanwhile, Wittenbach made $201,692. After Wittenbach told his sister to buy the stock, she made $13,214, the SEC said. The sister was not charged.

DeCinces agreed to settle the case for $2.5 million, without admitting or denying the allegations. The other defendants also settled without admitting or denying.

Donohue agreed to pay disgorgement of $75,570 and a penalty of $37,785, while Jackson agreed to pay disgorgement of $140,259, prejudgment interest of $12,508 and a penalty of $140,259.

At the same time, Wittenbach agreed to pay disgorgement of $201,692, prejudgment interest of $5,768, and a penalty of $214,906.

Jackson bought 8,500 shares of Advanced Medical with a handheld device while having breakfast with DeCinces, the SEC said.

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