Verdict Reached In Weston Man's Insider Trading Trial

HARTFORD, CT — A Weston physician is facing up to 40 years in prison after he was found guilty of insider trading Tuesday. Dr. Edward Kosinski, 70 was found guilty of two counts of securities fraud-insider trading in U.S. District Court in Hartford.

Kosinki was found to have sold 40,000 shares of stock in Regado Biosciences, Inc. (RGDO) after learning there had been several allergic reactions one of the company's drugs. After he sold the shares, the company publicly announced that the Data Safety and Monitoring Board initiated a review of the clinical trials, causing the stock to fall from between $6.59 and $7 per share to $2.81.

The U.S. Attorney's office says Kosinski avoided losses of around $160,000.

Kosinski then was told a death occurred in the clinical trial, and purchased 50 common stock put option contracts. Regado then announced the clinical trial had been halted and the common stock fell by 60 percent. Kosinki bought 5,000 shares of Regado common stock and exercised his put options, which netted him over $3,000.

He was released on a $500,000 bond pending sentencing.

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