A former Long Island investment adviser pleaded guilty Tuesday to a single count of conspiracy to commit securities fraud Tuesday, the Eastern District U.S. Attorney's Office said.
Tibor Klein was accused of using information obtained from his client and friend, former Arent Fox partner Robert Schulman, about the $3.6 billion merger of Pfizer Inc. and King Pharmaceuticals. Klein reportedly earned nearly $9,000 personally off the merger while netting more than $319,000 for his clients.
Schulman was convicted in March of securities fraud and conspiracy charges in a separate trial. Klein's attorneys had asked Eastern District Judge Joan Azrack to sever the cases, which the government initially brought against both Klein and Schulman. In late February, just ahead of the trial, the motion was granted.
According to an earlier U.S. Securities and Exchange Commission complaint filed against the pair, regulators said that Klein learned of the pending merger at a dinner attended by Schulman, who discussed the privileged information after he "drank several glasses of wine and became intoxicated."
In a statement, Klein's lawyer, Virginia attorney Christopher Bruno of Bruno & Degenhardt, said his client's decision was the "result of a number of inter-related factors," which led to him accepting responsibility for his conduct.
"He and his family look forward to putting this matter behind them," Bruno said.