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

Envestnet taps Atria alum Sean Meighan to sharpen RIA focus
Envestnet taps Atria alum Sean Meighan to sharpen RIA focus

The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.

LPL, Evercore welcome West Coast breakaways
LPL, Evercore welcome West Coast breakaways

The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.

Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case
Supreme Court slaps down brokerage's appeal vs. FINRA expulsion case

The high court's decision rebuffing Alpine Securities marks a setback for a broader challenge to Wall Street's reliance on self-regulatory organizations.

RIA moves: Arax extends Midwestern reach, Steward Partners debuts in Arizona
RIA moves: Arax extends Midwestern reach, Steward Partners debuts in Arizona

Arax acquires a boutique firm's $4 billion RIA business in Michigan as Steward Partners continues its Southwestern expansion.

In this hi-tech world of finance, JPMorgan has an old school strategy to woo HNWs
In this hi-tech world of finance, JPMorgan has an old school strategy to woo HNWs

Wealth management is a key focus for a new service tier.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.