In a bizarre case of insider trading, it has been revealed that a former Morgan Stanley stockbroker was given tip-offs, which were then destroyed by the accomplice who proceeded to eat the evidence.
The trader, Vladimir Eydelman, pleaded guilty to charges of securities fraud, tender offer fraud and conspiracy charges before U.S. District Judge Michael Shipp in New Jersey today, according to Reuters.
The details of the case are curious. Over a period of five years, the accused traded on ill-gotten tips about mergers and other corporate transactions that were stolen from Simpson Thacher & Bartlett, a major New York law firm.
Market Trading Ideas for May 10-14Go to article >>
To get the info, Frank Tamayo, a Brooklyn-based mortgage broker, would meet Eydelman near the clock in Grand Central Station, showing him ticker symbols on napkins or post-it notes, which he would then consume.
Tamayo would get the inside information from Steven Metro, a former Simpson Thacher managing clerk, who has pleaded not guilty to being an accomplice in the scam. Prosecutors said Metro would go to Manhattan bars or coffee shops to give Tamayo tips about Simpson Thacher clients.
The case came to light last year after Tamayo starting recording the conversations, pleading guilty in September. This included an instance when Eydelman gave him a cigar box containing $7,000 to help Metro buy and renovate a new home.
Eydelman is eligible for up to 20 years in prison when sentenced on December 21, although it’s likely the sentence will be reduced following the guilty plea.