washingtonpost.com  > Technology > Washtech

Former Executive At MedImmune Gets Prison Term

By Michael S. Rosenwald
Washington Post Staff Writer
Saturday, January 15, 2005; Page E01

A former vice president of MedImmune Inc. was sentenced yesterday to 15 months in prison on charges stemming from a series of improper stock trades.

Eric I. Tsao, a former scientist at the Gaithersburg biotech firm, pleaded guilty in September to an insider trading charge connected with $164,132 in gains he made from 1999 to 2001, buying and selling stock in companies that MedImmune later acquired. He funneled the trades through a Charles Schwab account registered to his father, who lives in Taiwan.

_____Local Tech News_____
Intelsat Loses Use of Satellite (The Washington Post, Jan 18, 2005)
TECHWORKING (The Washington Post, Jan 17, 2005)
Making Databases Work for Clients (The Washington Post, Jan 17, 2005)
More Headlines
Tech Events Calendar
_____Biotech Headlines_____
NIH Revises Plan for Quick, Free Access to Study Results (The Washington Post, Jan 18, 2005)
Bioterrorism War Game Shows Lack Of Readiness (The Washington Post, Jan 15, 2005)
Cel-Sci Quarterly Loss Narrows (Associated Press, Jan 13, 2005)
More Biotech News
_____Post 200 Profile_____
MedImmune Inc.
Stock Quote and News
Historical Chart
Company Description
Analyst Ratings
_____Related Articles_____
Ex-MedImmune Executive Gets 15 Months (Associated Press, Jan 14, 2005)
FluMist Maker Expects to Sell 2M Doses (Associated Press, Jan 11, 2005)
FluMist Maker Expects to Sell 2M Doses (Associated Press, Jan 11, 2005)
Study Suggests FluMist Sales Sluggish (Associated Press, Jan 6, 2005)
More Company News
_____Interactive Primer_____
Understanding Regulatory Policy
_____Related SEC Articles_____
Google, SEC Settle Over Stock Options (The Washington Post, Jan 14, 2005)
9 U.S. Foodservice Suppliers Charged (The Washington Post, Jan 14, 2005)
New Byword For Funds Is Disclosure (The Washington Post, Jan 9, 2005)
More SEC News

He also pleaded guilty to lying to Securities and Exchange Commission officials who investigated the transactions. Under oath, he told them that his wife made the trades, at times using his office computer. Tsao settled civil insider trading charges with the SEC last year, agreeing to pay more than $330,000 in fines.

During yesterday's hearing, U.S. District Judge Henry H. Kennedy Jr. said, according to a transcript, "People who are privileged, who are smart, who are benefited by the society, should understand that they cannot break the rules. They cannot. And that if they do, they will be punished."

Tsao, 44, spoke briefly to the court. "I'm terribly sorry for what I have done," he said. "I made serious judgment errors in this matter. This is the biggest lesson I have learned in my life, in the hardest way."

Thirteen of Tsao's former colleagues at MedImmune filed letters with the court on his behalf, according to prosecutors. He started working for the company as a senior scientist in 1992.

Tsao's sentence also includes two years of supervised release, an order to pay $164,132 in restitution and a fine of $5,000.

© 2005 The Washington Post Company