With jurors deadlocked, a mistrial was declared Wednesday in the trial of a Laguna Beach man accused in an alleged insider-trading scheme that led to the conviction of former California Angels third baseman Doug DeCinces.
U.S. District Judge Andrew Guilford declared the mistrial in the case of James V. Mazzo after determining the jury was deadlocked, voting 10-2 in favor of acquittal on all but one count. On the remaining count, which did not allege acts on any specific dates and was more broad, jurors deadlocked 9-3 for acquittal.
“We respect the jury’s decision,” Assistant U.S. Attorney Stephen Cazares, said.
Richard Marmaro, Mazzo’s told City News Service, ” We are gratified by the result. We appreciate the jury’s conscientious service, and we continue to believe in Jim Mazzo’s innocence.”
Mazzo, 61, a former eye-care company CEO, is an ex-neighbor of DeCinces, who was a convicted last May of 14 counts of insider trading stemming from stock tips he allegedly received from Mazzo.
DeCinces testified for the prosecution in Mazzo’s trial in hopes of receiving leniency in his sentencing. He testified that he was facing five years in federal prison, but said prosecutors agreed to request only two years behind bars in exchange for his cooperation in Mazzo’s trial.
DeCinces said he had been advised by a stock broker in 2008 to buy more stock in Mazzo’s company, Advanced Medical Optics Inc., because of a planned debt-restructuring that Mazzo had discussed that would save the company about $90 million.
DeCinces bought 3,500 shares in the company based on the broker’s advice, then talked to Mazzo about the restructuring plans, prompting him to buy more than 11,000 additional shares in the ensuing days, he testified.
Prosecutors contend that Mazzo tipped off DeCinces in January 2009 about the planned sale of Advanced Medical Optics to Abbott Laboratories. DeCinces said his stock broker advised him to sell his shares, and he collected more than $1 million in profits.
Mazzo’s attorneys have denied that he ever gave DeCinces any tips about the eye care company, noting during DeCinces’ testimony that the baseball player had repeatedly denied receiving any inside information from his former neighbor.
No sentencing date has been set for DeCinces.
–City News Service