Former Oregon biotech executive Mark Ahn faces six months in prison and an additional six months of home detention after pleading guilty to two counts of securities fraud.
In 2017, Ahn had been working as a biotech consultant for a company in New York, advising it in its efforts to buy a Massachusetts firm called Dimension Therapeutics. Prosecutors say Ahn learned that Dimension would be acquired by a different company and bought Dimension stock based on insider information.
When Dimension announced its sale, its stock jumped 262% in one day.
Ahn, 58, continues to live in Lake Oswego. He pleaded guilty in March to two charges connected to the stock purchase.
In addition to Ahn’s prison sentence, U.S. District Court Judge Richard Stearns on Monday ordered Ahn to forfeit $49,421 — the approximate value of his profits from the stock — pay a $5,500 fine and make additional restitution to be determined later. He also faces two years of supervised release.
Under a separate deal with federal securities regulators reached in April, Ahn is prohibited from serving as a board member or executive with publicly traded companies.
Ahn was previously CEO of Galena Biopharma, a Lake Oswego company that had been pursuing a vaccine for breast cancer. He quit that job in 2014 as the company faced allegations that it commissioned analytical essays promoting its work without disclosing Galena had paid for them.
Though Ahn denied knowing that Galena hadn’t disclosed its connection to the materials, he ultimately paid $1.34 million to settle charges by the U.S. Securities and Exchange Commission in connection with the accusations.
Attorneys for Ahn did not immediately respond to a message seeking comment on his sentencing.