(Reuters) - A federal jury on Tuesday convicted a Connecticut cardiologist of insider trading based on confidential information he learned about a clinical drug trial, prosecutors said on Tuesday.
Jurors in Hartford, Connecticut, took roughly four hours to find Edward Kosinski, 70, of Weston, guilty on two counts of securities fraud.
Each count carries a maximum 20-year prison term, though defendants typically receive far less.
Brian Spears, a lawyer for Kosinski, said his client is asking U.S. District Judge Vanessa Bryant, who presided over the trial, to set aside the verdict and enter a judgment of acquittal, and plans to appeal if he is unsuccessful.
Prosecutors said Kosinski sold his 40,000 shares of Regado Biosciences Inc on July 3, 2014, after learning nonpublic information about setbacks in a clinical trial of a drug to regulate clotting in patients undergoing coronary angioplasty.
They said these setbacks included several allergic reactions and a halt on accepting new subjects until the events could be reviewed.
Regado’s share price fell 58 percent on July 3, 2014, after the news was disclosed, and Kosinski avoided about $160,000 of losses by having sold his shares earlier, prosecutors said.
The defendant has worked at St. Vincent’s Medical Center in Bridgeport, Connecticut. Regado later merged with Tobira Therapeutics Inc.
Kosinski is free on $500,000 bail pending his sentencing, which has not been scheduled, prosecutors said. His trial began on Nov. 13.
The case is U.S. v. Kosinski, U.S. District Court, District of Connecticut, No. 16-cr-00148.
Reporting by Jonathan Stempel in New York; Editing by Jonathan Oatis