Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
A former deals lawyer at the London office of US law firm Goodwin Procter has pleaded not guilty to insider trading related to maternity-wear company Seraphine Group, which went into insolvency last year.
Richard Bloomfield, 38, entered his plea at Southwark Crown Court on Friday. Bloomfield is facing five counts of insider dealing between March 2022 and January 2023 in relation to the acquisition of the retail company by private equity group Mayfair.
Bloomfield spoke only to confirm his identity and plea in court. A trial has been scheduled for September 2028.
The charges against Bloomfield were announced in July by the UK Financial Conduct Authority, which is prosecuting the case. He appeared for the first time to face the allegations at Westminster Magistrates’ Court that month and was released on unconditional bail.
During the indictment period, Bloomfield is accused of having information as an insider when he acquired shares in Seraphine “that were price affected securities in relation to that information”, according to a copy of the charges.
The prosecution of Bloomfield is the second allegation of insider trading to hit Goodwin this year.
An ex-lawyer at the Boston-founded law firm was separately accused in May by US authorities of being at the heart of a network of illicit trading in shares of companies based on confidential information about takeover deals. The defendant in that case has pleaded not guilty and is awaiting trial.
Seraphine, whose clothes were worn by Catherine, Princess of Wales during her pregnancies, fell into insolvency last year. The brand and intellectual property was subsequently sold to Next for £600,000.
The demise of the maternity brand came just two years after its former private equity owner, Mayfair, bought it back off the stock exchange at a 90 per cent discount.
Bloomfield’s trading allegedly took place ahead of Seraphine’s acquisition by Mayfair.
The FCA is not investigating Goodwin Procter or Seraphine. The law firm said previously that it had “co-operated fully” with the regulator.
The prosecution of lawyers for insider dealing is relatively rare in the UK. The FCA prosecuted a former Clifford Chance lawyer two years ago, but he was acquitted halfway through the trial after the judge ruled there was no case to answer.
The maximum sentence for insider dealing in the UK is 10 years’ imprisonment.
