Grimy Times has learned that a federal jury in Hartford has found EDWARD J. KOSINSKI, 70, of Weston, guilty of insider trading offenses.
Kosinski was convicted of two counts of securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years on each count.
The crime dates back to January 2014 when Kosinski entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc. As a principal investigator for Regado’s clinical trial, Kosinski was required to maintain in strict confidence all confidential information he received from Regado or its agent during the course of the clinical trial.
On June 30, 2014, while in possession of this non-public information, Kosinski sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share. This avoided a loss of approximately $160,000.
Kosinski then purchased 50 Regado common stock put option contracts with a strike price of $2.50. When Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent, Kosinski purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.
Kosinski is currently released on a $500,000 bond pending sentencing. This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
In a related federal civil matter, Kosinski has been charged by the Securities and Exchange Commission (SEC) in the case Securities and Exchange Commission v. Edward J. Kosinski (3:16-cv-01322).
Key Facts
- State: Connecticut
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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