Business

LI broker risks it all for just $8,824

A 39-year-old Long Island investment adviser is in hot water and could lose his liceą¼’nse aź¦†fter allegedly trading on an insider tip on a $3.6 billion pharmaceutical deal ā€” info that netted him a whopping $8,824.

The adviser, Tibor Klein, got the tip from hšŸŽ€is drunk lawyer pal RobešŸ¤Ŗrt M. Schulman who, after a few too many cocktails, blurted out during an August 2010 dinner, ā€œIt would be nice to be King for a day,ā€ according to a complaint filed Friday by regulators.

The lawyerā€™s firm worked for King Pharmš“ƒ²aceuticals, which two months later agreed to be bought by Pfizer for $3.6 billion.

ā€œSchulman intended to imply he was a ā€˜big shotā€™ who knew ā€˜someā™• kind of informationā€™ about King Pharmaceuticals,ā€ the Securities and Exchange Commission said in its complaint.

On Aug. 16, the first day the market opened after his dinner meeting with Schulman, Klein bought 8āœ…00 shares of King for himself and 59,800 for his clients,š”‰ including 3,000 shares for Schulman, according to the SEC.

The broker continued to buy more King stock through Sept. 15, it is alleged. Those were his ā€œmost significantā€ purchases of a single stock that year, court paperāœ…s maināœ¤tain.

The Melville,ā–Ø N.Y., broker also passed the tip to his best friend and high school buddy, Michael Shechtman, of Lake WorthāœØ, Fla., who bought 2,500 shares of King for himself and another 2,400 for his wifeā€™s retirement account ā€” plus 300 call options, the SEC claims.

It was the first time Shechtman hadšŸ’® ever bought ā™šoptions, the SEC said.

Pfizer and King had entered intš†o a confidentiality agreement to discuss Pfizerā€™s possible acquš“†‰isition of King on July 9 of that year, according to the complaint.

The deal was announš“€ced in October 2010 and King shares shot up 39 percent.

Overall, more than $400,000 in illegaš’l gains weršŸ”Æe made from the tip.

Klein pocketed just $8,824, the SEC said ā€” while 46 clients of his Klein Financial Services brokerage firm made $319,550, or about $7,000 ašŸ’œpiece.

Shechtman, also 39, netted illegal gains of $109,049 fąµ©or him and his wife, according to the SEC.

Schulman, who was not charged, was one of Kleinā€™s clients whoź¦æ profited from the insider trading. He made $15,500 through a managed account.

When asked FrišŸ“day by šŸŽ€The Post if he was cooperating with the SEC, Schulman ā€” who has also taught patent law at Georgetown University, according to his firmā€™s web site ā€” declined to comment.

Shechtman liquidated tšŸ§øhe options account that day and sold the stock on Oct. 15.

He left his employer Ameriprise in 2012.

Shechtman and KleišŸŒŗn admitted talkiāœ¤ng to each other about the trades, the SEC complaint said. Neither could be reached for comment.