WASHINGTON, Nov. 13 (Xinhua) -- U.S. Securities and Exchange Commission (SEC) announced on Tuesday that a former CEO agreed to pay 1.5 million U.S. dollars for allegedly tipping insider information about his company's acquisition to a former baseball player.

According to SEC, James Mazzo, the former chairman and chief executive officer of Advanced Medical Optics, Inc. (AMO), provided material, nonpublic information about his company's acquisition to his close personal friend, former baseball player Douglas V. DeCinces.

The SEC's complaint alleged that Mazzo executed a nondisclosure agreement with Abbott Laboratories, Inc. in October 2008, as Abbott explored a potential acquisition of AMO.

The SEC said that Mazzo provided DeCinces with material, nonpublic information about the acquisition several times as merger talks between AMO and Abbott progressed over the following months.

The SEC complaint further alleged that DeCinces bought AMO securities numerous times. Besides, DeCinces also allegedly tipped five of his friends.

According to SEC, DeCinces gained over 1.3 million U.S. dollars and his friends obtained another 1 million dollars with the tipping information.

"The Commission alleges that Mr. Mazzo, a company insider, repeatedly gifted material, nonpublic information to his friend Mr. DeCinces, who in turn tipped his own friends," said Kelly L. Gibson, Associate Regional Director for Enforcement in the SEC's Philadelphia Regional Office.

"When it comes to insider trading, the fact that the insider does not directly share in the tippee's ill-gotten gains does not excuse his decision to benefit a friend at the expense of other shareholders," Gibson added.

The SEC said that Mazzo agreed to pay a civil penalty of 1.5 million dollars, and accept a five-year officer-and-director bar, without admitting or denying the SEC's allegations.