Former Baltimore Orioles player and MLB Hall of Famer Eddie Murray has agreed to pay over $358,000 to settle insider trading allegations brought against him by the U.S. Securities and Exchange Commission. The SEC accuses Murray of making more than $235,000 in a trading scheme involving another former Oriole, Doug DeCinces and James V. Mazzo, the former CEO of Advanced Medical Optics, Inc. (“AMO”).
The SEC’s complaint asserted that multiple tipoffs from Mazzo to DeCinces – and eventually, from DeCinces to Murray and others – lead to over $2.5 million in profits for those who acted on the inside information. Previously, Mazzo and DeCinces lived in the sameLaguna Beachgated community, and were close friends. The SEC’s case is built in part on Mazzo’s access to the privileged information and DeCinces “significant” purchase of AMO shares in the months leading up to the company’s acquisition.
The case against Murray was also based on the former athlete’s purchase of AMO shares prior to its acquisition by Abbott. As part of his settlement agreement, Murraywill be allowed to pay without admitting or denying the allegations against him. The SEC is moving forward with its case against Mazzo and others.