Lawyer Indicted in New Insider Trading Case

A lawyer was indicted Tuesday on charges of mail fraud and securities fraud for allegedly passing corporate inside information to friends and relatives who made nearly $1.5 million on trading profits.

The federal grand jury indictment charges Israel G. Grossman of Brooklyn, N.Y., with 12 counts of mail fraud and 12 counts of securities fraud.

Officials said the case had no connection to the Wall Street insider trading scandal involving Dennis B. Levine and Ivan F. Boesky.

Grossman, 34, was charged with passing information to a cousin, a nephew and a friend last July about a planned corporate recapitalization of Colt Industries.

The indictment alleges that Grossman stole the information about the Manhattan-based aerospace and automotive products concern while he was employed at the law firm of Kramer, Levin, Nessen, Kamin & Frankel, where he worked as a pension specialist.