A PYMNTS Company

US: Lawyer charged with insider trading before client merger

By  |  July 19, 2015

A former partner at a Philadelphia law firm has been charged with insider trading linked to a client’s merger with another insurance firm.

Federal prosecutors have charged Herbert Sudfield with making $75,000 by purchasing stock in Harleysville Insurance the day before its merger with Nationwide.

The 64-year-old Sudfield, of Doylestown, is charged with securities fraud and lying to the FBI.

Defense lawyer Robert Welsh Jr. tells The Legal Intelligencer that Sudfield will plead not guilty at his arraignment next week.

The indictment Thursday accuses the former Fox Rothschild partner of buying 3,000 shares of Harleysville stock the day before the companies merged and the stock doubled.

Full content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.