Grimy Times has learned that Tibor Klein, a 43-year-old registered investment advisor from Melville, New York, has pleaded guilty to one count of conspiracy to commit securities fraud in federal court in Brooklyn. The crime, which took place in 2023, involved Klein and a co-conspirator using material, non-public information to engage in securities transactions ahead of the merger announcement between Pfizer, Inc., and King Pharmaceuticals, Inc.
According to court documents, the information was provided by Klein’s client and friend, Robert Schulman, a former partner of a Richmond-based global law firm. Schulman had learned of the information through his representation of King Pharmaceuticals. Klein and the co-conspirator then used the information to make securities transactions, resulting in more than $400,000 in illegal profits.
Today’s guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS). Ms. Rohde thanked the USPIS for their 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 handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David C. Pitluck, Julia Nestor, and Patrick T. Hein are in charge of the prosecution. At sentencing, Klein faces a maximum sentence of five years’ imprisonment.
Klein, a registered investment advisor with a history of questionable dealings, had been under investigation for some time. His client and friend, Robert Schulman, had previously been convicted of securities fraud and securities fraud conspiracy following a jury trial in March 2017.
The case against Klein is a stark reminder of the dangers of insider trading and the importance of holding those who engage in such activities accountable. Grimy Times will continue to follow this story and provide updates as more information becomes available.
Mandatory Facts:
1. Defendant: Tibor Klein, a 43-year-old registered investment advisor from Melville, New York.
2. Exact Criminal Charges: Conspiracy to commit securities fraud.
3. City and State: Brooklyn, New York.
4. Exact Date: 2023 (crime date).
5. Sentence or Outcome: Klein faces a maximum sentence of five years’ imprisonment at sentencing.
6. Dollar Amounts: More than $400,000 in illegal profits.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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