A federal grand jury indicted the former chief executive officer of an Orange County medical device company on insider trading charges Wednesday, Sept. 24, the Department of Justice announced.
James V. Mazzo, 57, of Laguna Beach, the chief executive officer of Santa Ana-based Advanced Medical Optics, Inc., was added to an indictment that had previously named former professional baseball player Douglas V. DeCinces, also of Laguna, and two associates, real estate attorney Fred Scott Jackson and David Parker, the U.S. attorney’s office said in a statement.
“Throughout its investigation, the government simply ignored the voluminous evidence we presented to them demonstrating that Mr. Mazzo did not engage in insider trading,” said Mazzo’s attorney Richard Marmaro, of the Los Angeles office of Skadden, Arps.
“Mr. Mazzo flatly and unequivocally denies the government’s allegations,” he said.
“Mr. Mazzo has a spotless reputation for professionalism, integrity, and service to his community, built up over a career of 30 years. The notion that he would put all that at risk to give a single friend inside information is absurd.”
The case was initially filed in 2012 and alleges that Mazzo provided DeCinces and two associates with confidential information prior to a takeover bid for Advanced Medical Optics by Abbot Laboratories in 2009. The 41-count “supersceding” indictment alleges a similar arrangement between Mazzo and DeCinces in a buyout of another company by Advanced Medical in 2007.
Mazzo, 57, was the president of Abbott Medical Optics, Inc. until his retirement in May 2013, his attorney said.
DeCinces, 64, currently is the president and chief executive of a real estate development firm in Irvine, the U.S. attorney’s statement says.
The four indicted defendants will be summoned to appear for arraignments in U.S. District Court in Santa Ana.