Former Global Law Firm Partner Convicted Of Insider Trading
Robert Schulman Passed on a Tip About Pfizer’s Upcoming Acquisition of King Pharmaceuticals
Earlier today, following a week and a half trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Robert Schulman, a former partner of a Richmond-based global law firm, for securities fraud and securities fraud conspiracy. The indictment charged crimes stemming from Schulman tipping off the executive of an investment advisory firm about the pending merger between Pfizer, Inc. and King Pharmaceuticals, Inc. that Schulman had learned of through his representation of King Pharmaceuticals. Schulman and his co-conspirators then used that material non-public information to engage in securities transactions ahead of the merger announcement that resulted in more than $400,000 in illegal profits.
When sentenced by United States District Judge Joan M. Azrack, the defendant faces a maximum sentence of 20 years’ imprisonment.
The verdict was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
Ms. Rohde thanked the USPIS for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys David Pitluck and Julia Nestor of the Office’s Business and Securities Fraud Section.
E.D.N.Y. Docket No. 16-CR-442 (JMA)