U.S. officials charged an ex-partner of law firm McGuireWoods LLP with fraud on Wednesday, alleging he illegally obtained and sold shares of various companies for a profit of millions of dollars.
Louis Zehil, a 41-year-old Florida resident, was arrested, and a federal magistrate later set bail at $250,000. Zehil could face a maximum sentence of 20 years if convicted, the U.S. Attorney’s Office in Manhattan said.
Separately, the U.S. Securities and Exchange Commission filed a civil complaint against Zehil in U.S. district court in Manhattan.
Zehil, who worked at McGuireWoods’ offices in Jacksonville, Florida and New York, resigned from the firm earlier this month. His lawyer declined to comment.
Zehil represented seven companies between January 2006 and February 2007 in issuing their stock in private investments in public equity, or PIPE, transactions, according to the SEC