New York adviser sentenced to six months for insider trading

Tibor Klein also will pay $20,000 fine for trading on 2010 Pfizer acquisition.
FEB 13, 2018

Tibor Klein, a Long Island, N.Y., investment adviser, was sentenced to six months in prison on Monday after pleading guilty to insider trading in connection with Pfizer Inc's $3.6 billion acquisition of King Pharmaceuticals Inc. in 2010. U.S. District Judge Joan Azrack sentenced Mr. Klein, 44, in federal court in Brooklyn, N.Y., according to a Reuters report. Last July, Mr. Klein had pleaded guilty to one count of conspiracy to commit securities fraud. Mr. Klein, the founder of Valley Stream, N.Y.-based Klein Financial Services, also was sentenced to six months of house arrest and 250 hours of community service, according to Reuters, and ordered to forfeit $37,225 and pay a $20,000 fine. The government said Mr. Klein learned about the deal from Robert Schulman, then a partner at the law firm Hunton & Williams in Washington, who had represented King Pharmaceuticals. Mr. Klein purchased shares in King for himself, Mr. Schulman and clients, and informed a friend, Michael Shechtman, a Florida stockbroker, about the deal. Prosecutors say the insider trading resulted in more than $400,000 of overall illegal profit. Mr. Schulman, of McLean, Va., was convicted of insider trading last March. Mr. Shechtman, a former broker at Ameriprise, pleaded guilty in Brooklyn in November 2014 to conspiracy and has cooperated with prosecutors. He has not been sentenced. The Securities and Exchange Commission filed related civil charges against Mr. Klein and Mr. Shechtman in September 2013, but that case was put on hold until the criminal case was resolved.

Latest News

Wealth Enhancement deepens East Coast presence with Wealthshield deal
Wealth Enhancement deepens East Coast presence with Wealthshield deal

The Minneapolis-based RIA aggregator is adding two North Carolina practices managing nearly $1 billion, pushing its total client assets past $158.2 billion.

The real reason I expanded my RIA to Hong Kong (it wasn't for the AUM)
The real reason I expanded my RIA to Hong Kong (it wasn't for the AUM)

As markets disintegrate, the value of on-the-ground, first-hand research through "intimate knowledge acquisition" is skyrocketing.

Caprock expands Texas footprint with $4B Venturi acquisition
Caprock expands Texas footprint with $4B Venturi acquisition

Deal brings 10 advisors and deeper family office reach to Austin market.

Mariner aims to ‘break growth ceiling’ by deploying AI workforce of 700
Mariner aims to ‘break growth ceiling’ by deploying AI workforce of 700

Mega-RIA to adopt AI workforce at enterprise scale as firm rethinks growth without hiring.

LPL Financial adds $2.4 billion San Diego team as recruiting pace hits yearly high
LPL Financial adds $2.4 billion San Diego team as recruiting pace hits yearly high

The five-advisor group leaves U.S. Bank for LPL's platform, part of a record June that saw 204 advisors join the firm.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income