Yesterday, the SEC announced an insider trading action against Herbert K. Sudfeld, a former attorney with law firm Fox Rothschild. The SEC alleged that Sudfeld engaged in insider trading in the stock of Harleysville Group, Inc. in advance of a merger on which Sudfeld’s firm advised Harleysville. Sudfeld allegedly made $79,000 in illegal profits.
According to the SEC, Sudfeld did not work on the merger himself but learned about it two days before the announcement from a legal assistant that he shared with several lawyers who advised Harleysville on the transaction. Sudfeld and the legal assistant were allegedly close friends who had worked together for decades and jointly owned a vacation home.
