Ex-BigLaw partner is convicted of insider trading; feds say he misused deal info overheard at firm
After four days of trial and less than four hours of deliberation, a former real estate partner of Fox Rothschild was convicted of insider trading Friday by a federal jury in Philadelphia.
Herbert Sudfeld Jr. was also convicted of making false statements to the FBI, reports the Legal Intelligencer (sub. req.).
Prosecutors said Sudfeld overheard discussion at the law firm’s Warrington, Pennsylvania, office about a planned Nationwide-Harleysville Insurance merger being handled by Fox Rothschild. The day before the merger was completed, he reportedly purchased 3,000 shares of Harleysville stock and made $75,000.
“He’s sitting one door down from the guys working on the deal,” assistant U.S. attorney Denise Wolf told jurors. “This isn’t just a coincidence, it’s a miracle.”
The defense argued that Sudfeld knew about the merger in advance because the rumored deal had been reported in the Philadelphia Inquirer.
However, law firm witnesses testified that permission from Fox Rothschild was required to purchase stock in client companies and managing partner Mark Silow told the jury that Sudfeld never sought such permission, an earlier Legal Intelligencer (sub. req.) story reported.
Sudfeld will be sentenced at a later date.
Fox Rothschild has not been accused of any wrongdoing.
