Doylestown Lawyer Convicted Of Insider Trading

A Bucks County lawyer is facing a potential 25-years prison sentence after being convicted of insider trading, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced Friday.

Herbert Sudfeld, 64, of Doylestown was also convicted of making a false statement.

According to authorities, Sudfeld was a partner in a Pennsylvania law firm that represented Harleysville Group, Inc., in its merger with Nationwide Mutual Insurance Company.

Sudfeld knew the merger was imminent and knew he had a fiduciary duty to keep it confidential, the U.S. Attorney’s office said.

But instead, in September 2011, prior to the public announcement of the merger agreement, Sudfeld purchased Harleysville stock. The next day, when Harleysville and Nationwide publicly announced the merger, Harleysville stock rose by approximately 85 percent, authorities said.

Sudfeld then sold the shares he had bought a day earlier, netting personal profits of approximately $75,530, the U.S. Attorney’s office said.

Additionally, authorities allege Sudfeld falsely told FBI agents that he was not aware of the Harleysville stock transactions until several days to a week later, among other false statements.

The case was investigated by the Federal Bureau of Investigation.