Loading...
Summary: The former managing clerk at Simpson Thacher & Bartlett pleaded guilty for his role in an insider trading scheme that made $5.6 million.
Former Simpson Thacher & Bartlett LLP managing clerk has admitted to stealing confidential information from the firm to use in an insider trading scheme. The scheme had been going on for five years and was estimated to have made around $5.6 million in profit.
Steven Metro pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities and tender offer fraud before U.S. District Judge Michael A. Shipp in Trenton federal court.
The details of the report state that Metro stole material from 2009 to 2013 from the firm’s computer system by searching key terms like “merger agreement,” “due diligence,” and “bid letter.” Since Metro was the managing clerk, he did not work on the transactions personally. He would then meet with his friend Frank Tamayo of Brooklyn at various locations like bars and coffee shops. During their meetings, Metro would present his friend with the obtained information such as names or ticker symbols of companies whose securities could be purchased.
Tamayo would then meet with Vladimir Eydelman at places like the clock at Grand Central Station in New York City to give him the information obtained by Metro. The information was always written down on something discreet like a napkin, which Tamayo would dispose of by chewing up in his mouth until it was destroyed.
Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!
Eydelman would then buy securities for himself, family members, friends, and clients like Tamayo. Once the deal was announced and stock prices rose, Eydelman would quickly sell the shares. Tamayo would continually reinvest the profits made from the first deal, around $7,000, and keep Metro updated on his balance. By October 2013 when they had made money from 13 deals, Metro’s balance was at $168,000.
Metro is facing a maximum of 20 years in prison and a $5 million fine for the securities fraud charge. The conspiracy charge holds a maximum of five years in prison and a $250,000 fine. He will also be required to forfeit any proceeds from the crime.
Tamayo and Eydelman have pleaded guilty for their parts in the scheme.
Photo: trademarkia.com
