Herbert Sudfeld, Insider Trading and False Statement, Pennsylvania 2011

Bucks County Lawyer Charged in Insider Trading Scam

Herbert Sudfeld, a 64-year-old lawyer from Doylestown, Pennsylvania, has been charged with insider trading and making a false statement, announced United States Attorney Zane David Memeger. The indictment alleges that Sudfeld exploited his position as a partner in a law firm representing Harleysville Group, Inc. in its merger with Nationwide Mutual Insurance Company.

Sudfeld allegedly knew the merger was imminent and had a fiduciary duty to keep it confidential. On September 28, 2011, he contacted his stock broker to purchase Harleysville stock, only to sell the shares the next day, netting personal profits of approximately $75,530.

According to the indictment, Sudfeld falsely told FBI agents investigating insider trading that he was not aware of the Harleysville stock transactions until several days to a week later. He also claimed that he had informed his broker that he could not be involved in trades of Harleysville stock due to his position at his law firm, which was also false.

The case was investigated by the Federal Bureau of Investigation, and it is being prosecuted by Assistant United States Attorney Denise S. Wolf. If convicted, Sudfeld faces a maximum possible sentence of 25 years in prison, a three-year period of supervised release, and a $5.25 million fine.

An indictment is an accusation, and the defendant is presumed innocent unless and until proven guilty. The public is encouraged to report any suspicious financial activity to the authorities.

Hughes Sudfeld’s law firm represented Harleysville Group, Inc. in its merger with Nationwide Mutual Insurance Company.

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