August 4, 2016

The SEC charged Connecticut cardiologist Dr. Edward Kosinski with insider trading.  Dr. Kosinski was the principal investigator in a drug trial being pursued by Regado Biosciences for a potential new clotting agent designed to be used in patients undergoing coronary angioplasty.  Dr. Kosinski received advance notice that patient enrollment in the trial was being suspended because patients had experienced severe allergic reactions.  In response, he allegedly sold all 40,000 shares of his Regado stock to avoid $160,000 in losses he would have suffered when the news became public and the stock dropped.  A month later, he received advance notice that enrollment would be halted because a patient had died, and he again profited by betting the stock price would drop and purchasing option trades.  SEC

Tagged in: Insider Trading, Securities Fraud,