New Yorkers might be interested to learn that a big law partner at two major law firms in Washington, D.C., has agreed to a three-year suspension of his law license following his conviction for insider trading. The man previously worked as an intellectual property partner at Arent Fox and Hunter & Williams in Washington, D.C.
In 2017, the man was convicted of insider trading after he reportedly tipped off his investment adviser about a pharmaceutical company merger while he was working as a partner at Hunter & Williams. He subsequently became a partner at Arent Fox.
He reportedly told his adviser that he had to turn in some files to Hunter & Williams for a meeting and then said that it would be nice to be “king for a day.” The adviser took this to mean that he should invest in the company for the partner, himself and other investment clients.
The man accused of insider trading made around $15,500 on the deal. After he was found guilty, he was sentenced to serve three years of probation and was fined $50,000. He also was ordered to forfeit the $15,500 he had earned on the illicit deal.
The action against his law license resulted in negotiated discipline. The ethics committee did not find that he had acted with moral turpitude since he had not sought a substantial financial benefit and had no previous blemishes on his disciplinary record.
Securities fraud is a real problem in New York that can cause victims to lose substantial sums of money. While some people might view things like insider trading as a victimless crime, others can still suffer harm.