FCA charges former Goodwin Procter lawyer over Seraphine insider trading case

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FCA charges Seraphine insider trading

Highlights

FCA charged former Goodwin Procter lawyer Richard Bloomfield with five counts of insider trading in Seraphine Group shares between March 2022 and January 2023 during its sale to Mayfair.
Seraphine collapsed into insolvency in 2023, selling its brand and IP to Next for 600,000 pounds after Mayfair acquired the company at 15.3 million pounds—roughly 90% below its 2021 IPO valuation.
This case marks the second insider trading allegation against a former Goodwin lawyer this year, increasing regulatory scrutiny on the legal sector's M&A practices.

Charges tied to Seraphine sale timeline

As reported by Financial Times, citing the Financial Conduct Authority, Richard Bloomfield is accused of dealing in Seraphine Group securities on five occasions between March 2022 and January 2023 while working on the company's sale to private equity group Mayfair.

The watchdog said Bloomfield, a former solicitor at Boston-headquartered Goodwin Procter's London office, appeared before Westminster Magistrates' Court on Wednesday and gave no indication of his plea. He was released on bail and is due to appear at Southwark Crown Court on August 5.

The FCA said it is not investigating the law firm, which it did not name, or Seraphine. Goodwin said in a statement that it is aware of the charges against its former employee, that there are no allegations of wrongdoing by the firm, and that it has co-operated fully with the regulator.

Legal sector scrutiny and Seraphine fallout

The charges are the second insider trading allegation to affect Goodwin this year, after a separate case in which U.S. authorities accused another former lawyer at the firm of playing a central role in an illicit trading network based on confidential takeover information. The defendants in that matter have pleaded not guilty and are awaiting trial.

Bloomfield, 38, specialises in legal advice on mergers and acquisitions as well as energy and technology companies, according to his Law Society entry. He moved to a legal tech company earlier this year, according to LinkedIn.

Seraphine later fell into insolvency last year, when its brand and intellectual property were sold to retailer Next for 600,000 pounds. The collapse followed a sharp decline from its 2021 London listing under the ticker BUMP at a 150 million pound valuation; Mayfair eventually bought the company in a deal valuing it at 15.3 million pounds, about 90% below its flotation price.

Our earlier analysis of Robinhood (HOOD) focused on how insider activity and company catalysts were shaping sentiment ahead of its earnings date. We noted that a notable insider share sale by a top executive, alongside product expansion news, added to near-term volatility and kept traders focused on key technical levels for a potential breakout or further downside.

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