Conn. doctor gets 5 years in insider trading case

By the Associated Press | November 18, 2011 | 12:50 PM EST

NEW YORK (AP) — A Harvard-trained physician has been sentenced to five years in prison for evading $30 million in investment losses by obtaining inside information from a fellow doctor.

Joseph Skowron III (SKOW'-rahn) was sentenced Friday by federal Judge Denise Cote (koht) in Manhattan. The 42-year-old Greenwich, Conn., resident pleaded guilty in August to conspiring to commit securities fraud and obstructing justice.

Skowron admitted that he gained an advantage in his work as a hedge fund analyst to avoid millions of dollars in losses in 2007 and 2008. He said he used tips gained through his meetings and conversations with a French doctor who knew inside information about clinical drug trials.

The probe began after the Securities and Exchange Commission spotted trading irregularities in the stock of a liver disease drugmaker.