A cardiologist charged by the Securities and Exchange Commission with insider trading on confidential developments as he worked on a clinical drug trial has been sentenced to 6 months imprisonment and ordered to pay a $500,000 fine. In November 2017, a federal jury convicted Dr. Edward J. Kosinski of Weston, Conn., of two counts of securities fraud.

The criminal securities fraud charges arose from the same facts and circumstances alleged in the SEC's complaint, filed on August 4, 2016. According to the SEC's complaint, Kosinski traded in advance of two negative news announcements by Regado Bioscience. Kosinski, who served as principal investigator of a drug trial sponsored by Regado, learned that patient enrollment in the trial was being suspended because patients had experienced severe allergic reactions. He sold all 40,000 shares of his Regado stock the following day to avoid approximately $160,000 in losses when the news became public and the stock price dropped. A month later, Kosinski learned that enrollment in the trial was going to be halted because a patient had died, and he profited through options trades by betting that Regado's stock price would drop again.

The SEC's action against Kosinski is ongoing. The SEC is seeking a permanent injunction, disgorgement plus prejudgment interest, and a civil penalty.

The SEC appreciates the efforts of the U.S. Attorney's Office for the District of Connecticut in prosecuting this matter. The SEC also appreciates the assistance of the Federal Bureau of Investigation and the Financial Industry Regulatory Authority.