P.M. BRIEFING : U.S. Charges 5 in Insider Scam
Federal securities regulators say five partners in a Detroit law firm avoided sizable losses on the stock of a foundering drug company through an alleged insider trading scheme.
Three of the lawyers charged in a civil lawsuit settled with the Securities and Exchange Commission without admitting or denying wrongdoing.
The SEC charged that one partner, Saul Bluestone, who was a member of the board of Zenith Laboratories Inc., sold his stock in May, 1988, after learning that the Ramsey, N.J., generic-drug maker had defaulted on a bank loan and was considering filing for bankruptcy protection.
Bluestone, 61, of Farmington Hills, Mich., was accused of passing the information on to the other defendants, who also were partners in the Detroit law firm now known as Lopatin Miller.
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