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Hall of shame: Eddie Murray charged with insider trading

August 17, 2012: 3:24 PM ET

Baseball great accused of profiting from an illegal tip.

FORTUNE -- Former Baltimore Orioles first baseman Eddie Murray today was charged by the Securities and Exchange Commission with illegally trading on inside information related to a 2009 merger. He also has agreed to settle by paying a $358,151 penalty, compared to the $235,314 he allegedly made off the illegal investment.

The case is related to insider trading charges brought last year against Doug DeCinces, also a former ballplayer who once was Murray's teammate in Baltimore.

Basically, DeCinces was a "close friend" and neighbor to the CEO of Advanced Medical Optics, a publicly-traded company that was preparing to announce an acquisition by Abbott Laboratories (ABT). When announced, the deal would be priced at a 143% premium to AMO's closing price the prior day.

DeCinces bought a bunch of shares, and also told several friends. Among them apparently was Murray, who purchased 17,000 shares of AMO stock. Also charged today was the original tipster, James Mazzo, and fellow DeCinces pal Dave Parker (no, not the ex-MLB star). Neither Mazzo nor Parker have settled.

To date, the SEC estimates that the AMO tips have resulted in around $2.4 million in illegal gains, and around $3.3 million of payments to the SEC.

Below is a copy of the complaint against Murray, Mazzo and Parker:

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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