Milken May Have Harmed Chances of Earlier Parole : Securities: The ex-junk bond king’s testimony at a onetime associate’s trial angers prosecutors.

NEW YORK —  Michael Milken may have hurt his chances of getting his 10-year prison sentence reduced by refusing to admit to crimes while testifying Wednesday at the trial of a former portfolio fund manager.

Federal prosecutors were apparently so angered at his testimony that they are considering complaining to U.S. District Judge Kimba Wood, who is expected to decide shortly whether to cut Milken’s sentence.

“There is nothing that would keep us from doing that,” said John Carroll, head of the U.S. attorney’s securities fraud unit. “We haven’t decided what to do yet.”

He would not comment further about the testimony.

Milken, who has cooperated with authorities in the past, testified for the first time as a defense witness.

He took the stand on behalf of Patricia Ostrander, former portfolio manager at Boston-based Fidelity Investments, who is charged with taking a bribe from Milken in exchange for doing business with Drexel Burnham Lambert.

Milken, the former junk bond department chief at now-defunct Drexel, testified in Manhattan federal court under court order.

During his testimony, he denied offering a bribe to Ostrander or any other Drexel client.

Assistant U.S. Atty. Kenneth Vianale, infuriated by Milken’s responses, grilled him in an effort to discredit him in front of the jury.

Ostrander, who lives in Brookline, Mass., is charged with two counts of taking bribes for doing business with Drexel and one of violating securities reporting laws.