BOSTON -- Two men who worked at Cambridge pharmaceutical companies, one of whom is a Westford resident, were convicted Tuesday on charges related to insider trading.

Songjiang Wang, 54, of Westford was convicted of one count of conspiracy to commit securities fraud and two counts of securities fraud, while Schultz "Jason" Chan, 54, of Newton was convicted of one count of conspiracy to commit securities fraud and three counts of securities fraud, authorities announced in a Tuesday press release.

Wang and Chan were friends who worked at different biopharmaceutical companies. Between November 2013 and September 2015, exchanged insider information about successful clinical drug trials at their businesses and used the tips to purchase stocks before the results had become public, according to the press release from the U.S. attorney for Massachusetts.

In late August 2015, the two exchanged text messages shortly before Wang purchased stock in Chan's company, according to an affidavit in the case. Chan's company announced the results of a trial weeks later, and its stock price increased 45 percent.

Wang also gave Chan cash to purchase stock in Wang's company, then Chan sold the stock and repaid Wang, authorities said.

Authorities did not name the companies involved in court documents or press releases, but the Boston Business Journal reported last year that Wang worked for Merrimack Pharmaceuticals.

Both men were charged last year and convicted by a federal jury Tuesday. U.S. District Court Judge Indira Talwani scheduled Chan's sentencing for Oct.


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4 and Wang's sentencing for Oct. 5.

The securities fraud charges carry with them a maximum sentence of 20 years in prison, three years of supervised release and a $5 million fine, according to the press release. The conspiracy to commit securities fraud charges allow for a lesser maximum sentence.

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