Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
By Phyllis Diamond
Dec. 22 — Former professional baseball player Douglas DeCinces and the former eye-care executive who allegedly tipped him to inside merger information can't bar prosecutors from introducing evidence they traded tips about other mergers that weren't charged in the indictment, the U.S. Court of Appeals for the Ninth Circuit ruled Dec. 22 (United States v. DeCinces, 2015 BL 420600, 9th Cir., No. 15-50033, 12/22/15).
It said that while the allegations constituted “other acts” evidence within the meaning of Fed.R.Evid. 404(b), it was nonetheless admissible to show knowledge and intent with respect to the charged insider-trading violations.
Judge Johnnie B. Rawlinson also rejected for lack of jurisdiction a cross-appeal by DeCinces' co-defendant James Mazzo, who claimed the indictment should have been dismissed on double jeopardy grounds. Judge Paul J. Watford concurred in that decision.
Mazzo, DeCinces and several of DeCinces' associates were indicted beginning in 2012 over their alleged roles in an insider trading scheme involving the 2009 acquisition of a medical device company by Abbott Laboratories Inc. ((187 Securities Law Daily, 9/26/14)(230 Securities Law Daily, 11/30/12).
In the insider trading prosecution, the government appealed a pretrial order excluding evidence that Mazzo tipped DeCinces to two other prospective merger transactions that weren't charged in the indictment. Reversing, the appeals court said that evidence is material and tends to prove a common scheme and the lack of mistake or coincidence.
On cross-appeal, Mazzo argued that he presented a viable double-jeopardy claim subject to immediate review. However, the appeals court said the Double Jeopardy Clause doesn't bar the government from prosecuting a defendant for multiple offenses in a single prosecution.
Mazzo was represented by Skadden, Arps, Slate, Meagher & Flom LLP. Manatt, Phelps & Phillips LLP represented DeCinces.
To contact the reporter on this story: Phyllis Diamond in Washington at email@example.com
To contact the editor responsible for this story: Rob Tricchinelli at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)