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 Sudfeld with making $75,000 by purchasing stock in Harleysville Insurance the day before its merger with Nationwide.
The 64-year-old Sudfeld, of Doylestown, Pennsylvania, is charged with securities fraud and lying to the FBI.
Defense lawyer Robert Welsh Jr. tells The Legal Intelligencer that Sudfeld will plead not guilty at his arraignment this week.
The indictment on July 16 accuses the former Fox Rothschild partner of buying 3,000 shares of Harleysville stock the day before the companies merged and the stock doubled.
Fox Rothschild chairman Abe Reich says Sudfeld left the firm three years ago. He says the firm has zero tolerance for the violations alleged.
Related:
- Top 10, Bottom 10 Housing Markets in U.S.: Nationwide
- Nationwide Names Executives, Divisions Under One-Brand Strategy
- Nationwide to Realign Under Single Brand; Drop Harleysville, Scottsdale Names
- Nationwide Mutual Completes Harleysville Merger
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