Wednesday, July 29, 2015

Law Firm Insider Trading: New Allegations and News (and Now Jail Time)

Ex-Wilson Sonsini Staffer Seeks To Avoid Jail Over Trades --
  • "A former Wilson Sonsini Goodrich & Rosati PC information technology employee told a New York federal judge Wednesday he should not be sentenced to jail for trading on inside information about client deals and apologized for any damage to the firm’s reputation."
  • "According to the government, Braverman earned more than $300,000 by trading the stocks of several technology and pharmaceutical companies, as well as children’s clothing retailer Gymboree Corp. He was arrested in September 2014."
  • "He said he got the idea to trade on inside information while driving home from work one day, when he heard on the radio about a merger involving a Wilson Sonsini client."
  • [As previously noted]: "Braverman used computerized records at the law firm to identify companies involved in possible acquisitions, including Gymboree Corp., Inc., Epicor Software Corp. and Seagate Technology Plc, according to charges made public today in Manhattan federal court."
Ex-Fox Rothschild Partner Pleads Not Guilty to Insider Trading --
  • "A former Fox Rothschild lawyer who was with the firm during its handling of the 2012 Harleysville-Nationwide insurance merger pleaded not guilty in federal court to insider-trading charges."
  • "The indictment alleged that a day after Sudfeld learned the merger was going forward, he contacted his stockbroker and purchased 1,000 shares of Harleysville stock under his wife's account on the morning of Sept. 28, 2011. That afternoon, Sudfeld bought 2,000 shares of Harleysville stock from his own account. Sudfeld did not tell his broker that he was trading on inside information, the indictment said."
  • "Sudfeld did not tell his former firm about the stock purchases, the indictment alleged, and knew he was violating the firm's confidentiality rules by trading based on private information."
Update: This evening, the Wall Street Journal reports that a jail sentence has been handed down in the Wilson Sonsini matter: "A former employee at the law firm Wilson, Sonsini Goodrich & Rosati PC was sentenced to two years in prison Wednesday for insider trading, eight months after admitting to making illegal trades using data gleaned from the firm’s computer system."

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