Versant Ventures and James Mazzo agreed that Mazzo will “suspend any activities” at the venture capital shop following his indictment last month on insider trading charges.
Versant tapped Mazzo last July, naming him its 1st “operating partner” and installing him as CEO of portfolio company AcuFocus. At the time Mazzo told MassDevice.com that he wanted to stretch himself following nearly a decade at the helm of Advanced Medical Optics, which Abbott (NYSE:ABT) bought for $2.8 billion in 2009.
Last month a federal grand jury indicted Mazzo on 13 insider trading charges, accusing him of tipping off close friend and neighbor Doug DeCinces about the deal. DeCinces, a former baseball player for the Baltimore Orioles, allegedly passed the information on to former teammate Eddie Murray, who agreed to settle his case for $358,000 but admitted no wrongdoing.
Mazzo has denied any wrongdoing and was on hand for medtech’s annual AdvaMed confab in Chicago last week.
Versant told Fortune shortly after the indictment that Mazzo would be suspended.
“Upon learning of the indictment of Mr. Mazzo, Versant and Mr. Mazzo have mutually agreed that he will suspend any activities as a Versant Operating partner until he has resolved the legal matters. We have no other comment,” Versant said, according to the business magazine, which also reported that Mazzo will evidently stay in the corner office at AcuFocus.