Federal judge dismisses insider trading convictions

SANTA ANA -- A U.S. judge granted prosecutors' request to dismiss the insider trading indictment of a former Orange County businessman, vacating three felony convictions returned by a jury nearly two years ago.

The move on Wednesday ended the criminal case nearly a year after prosecutors acknowledged a co-defendant's proclamation of the businessman's innocence.

U.S. District Judge Andrew J. Guilford's one-sentence order dismissing David L. Parker's case with prejudice cites "good cause" and a motion by the U.S. attorney's office filed last week. The motion offers no explanation, but prosecutors acknowledged in March 2018 they were considering the exonerating testimony of retired professional baseball player Doug DeCinces.

Thom Mrozek, spokesman for the Central District U.S. attorney, said prosecutors "moved to dismiss those charges in the interests of justice."

Parker's lawyer, Idaho sole practitioner George B. Brunt, said he, Parker and his co-counsel, Newport Beach sole practitioner Jeffrey C. Tatch, are "extremely pleased."

A civil Securities Exchange Commission case against Parker is pending; Brunt said he expects to "hear something in the next few weeks."

DeCinces testified in January 2018 he didn't tell Parker insider information about a looming sale when he recommended Parker buy stock in Advanced Medical Optics shortly before it was acquired by Abbott Laboratories in January 2009.

The testimony occurred after a jury convicted DeCinces and Parker of tender offer fraud in May 2017 but hung on charges against former Advanced CEO James Mazzo, DeCinces' ex-friend and neighbor. DeCinces agreed to testify against Mazzo at a second trial, and Mazzo's now-retired lawyer, Richard Marmaro of Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates, elicited the testimony about Parker during cross examination. United States v. DeCinces et al., CR12-00269 (C.D. Cal., filed Nov. 28, 2012).

The second jury also hung on Mazzo's charges, and the U.S. attorney dismissed them in December in a cross-case settlement that included a no-fault, $1.5 million judgment in Mazzo's SEC civil case.

Parker was a longtime friend of DeCinces who shared an office with him in Orange County. He now resides in Utah.