On August 10, Tibor Klein, founder and president of Klein Financial Services, and Robert Schulman, a former partner in a Richmond-based global law firm, were indicted on charges of securities fraud and conspiracy to commit securities fraud.  The indictment alleges that through his representation of King Pharmaceuticals in patent litigation, Schulman learned of a pending merger between King and Pfizer, Inc. in August 2010.  Schulman then allegedly revealed this information to Klein at a meeting at his home on the weekend of August 13, 2010.  The following Monday, August 16, Klein began purchasing shares of King stock for himself, Schulman, and other clients of his firm, acquiring more than $585,000 of King stock.  Separately Klein directed a registered broker to purchase King stock and call options.  Pfizer’s acquisition of King was publicly announced on October 12, 2010, and Klein sold all of the King shares he had acquired and directed the Florida broker to do the same.  The two schemes allegedly generated more than $400,000 in ill-gotten gains.  United States v. Klein, 16-cr-442 (E.D.N.Y.). DOJ Press Release