Robert Schulman, Insider Trading, New York 2024

Insider Trading Schemes Exposed: Former Global Law Firm Partner Convicted of Securities Fraud and Conspiracy in New York

A federal jury in Brooklyn, New York, returned a guilty verdict against Robert Schulman, a 58-year-old former partner of a Richmond-based global law firm, for securities fraud and securities fraud conspiracy. Schulman’s crimes were uncovered following a week and a half trial that shed light on the severity of insider trading schemes.

According to the indictment, Schulman tipped off the executive of an investment advisory firm about the pending merger between Pfizer, Inc. and King Pharmaceuticals, Inc. that he had learned of through his representation of King Pharmaceuticals. The material non-public information was then used to engage in securities transactions ahead of the merger announcement, resulting in over $400,000 in illegal profits.

Schulman and his co-conspirators exploited their knowledge of the merger for personal gain, highlighting the need for tighter regulations and greater accountability in the financial sector. The guilty verdict sends a strong message that insider trading will not be tolerated.

When sentenced by United States District Judge Joan M. Azrack, Schulman 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).

Rohde praised 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. The case highlights the importance of vigilant law enforcement and cooperation among regulatory agencies in preventing insider trading and protecting the integrity of the financial markets.

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