Partner In Bucks Law Firm Charged With Using Insider Trading Information To Make Profit
By Jim Melwert
Norristown, Pa. (CBS) -- A 64-year-old Doylestown man has been indicted by a federal grand jury on allegations he used insider information to profit off a merger on which he was working.
Herbert Sudfeld is charged with insider trading and three counts of making a false statement to investigators.
Assistant US Attorney Denise Wolf says Sudfeld was a partner in a law firm that was handling the merger between the Harleysville Group and Nationwide Mutual Insurance Company.
And, according to the indictment, Sudfeld bought Harleysville stock, knowing the merger was imminent:
"He purchased stock the day before the merger was publicly announced and then hours after it was publicly announced," said Wolf, "he sold that same stock, he made over $75,000 over that short period of time through these transactions."
If convicted, Sudfeld could face a maximum sentence of 25-years in prison along with a fine of over five-million dollars.