November 28, 2017

Weston man guilty of insider trading

A federal jury in Hartford convicted a Weston man Tuesday of insider trading after he sold pharmaceutical stock before it plunged on damaging public news about a clinical drug trial he oversaw, authorities say.

Edward J. Kosinski, 70, was convicted in Hartford federal court on two counts of securities fraud-insider trading, the Connecticut U.S. Attorney's Office said. Free on $50,000 bond, Kosinski could get up to 40 years in prison on both counts. A sentencing date has not been set.

According to investigators and court testimony, Kosinski in Jan. 2014 signed on as a principal investigator and authorized agent for Regado Biosciences, a former California biopharma startup. As such, Kosinski agreed to maintain all Regado research and other information confidential.

By May 2014, Kosinski owned 40,000 Regado shares, authorities said. In June 2014, Kosinski and other Regano clinical investigators were notified by their clinical-trial team that the acceptance of new trial subjects was suspended due to several allergic reactions observed during the trial.

That day, Kosinski sold all 40,000 Regano shares at a price that helped him eventually avoid a $160,000 loss on his holdings, investigators said. Regado's stock plummeted.

However, Kosinski turned around in succeeding days and traded further on his inside information, buying options to acquire Regano shares after it was disclosed that one of its clinical-trial participants had died.

Using the options, he purchased 5,000 shares of Regado stock on which he pocketed a $3,000 profit, investigators said.

Kosinski could not be immediately reached Tuesday for comment.

Regado merged in May 2015 with California biopharma Tobira Therapeutics.

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