A Morgan Stanley broker and a law firm employee were charged with insider trading in a scheme that included passing tips on notes and napkins that a middleman swallowed under the big clock in Grand Central Terminal.
Bloomberg reports that Steven Metro, 40, the managing clerk at Simpson Thacher & Bartlett in New York, was accused Wednesday of stealing confidential data on 13 corporate transactions and tipping a friend who passed it to broker Vladimir Eydelman, 42, according to an arrest complaint in U.S. court in Newark, New Jersey.
Metro stole data from Simpson Thacher’s computers and gave it to the middleman in New York bars and coffee shops, according to the U.S. Securities and Exchange Commission, which also sued the men. Eydelman traded from February 2009 to February 2013 for himself, family, friends and clients, in a scheme that made more than $5.6m in illicit profit, prosecutors said.
In his meetings with the middleman, Metro would pass inside information by typing the names of companies involved in transactions on his mobile phone, according to the SEC. Metro pointed to the names or ticker symbols on his phone to tell the middleman which company was being bought or sold.
Eydelman would meet the middleman near the large clock at Grand Central and show him a Post-It note or napkin with the stock ticker symbol of the company to be acquired, the SEC said.
'The middleman then chewed up, and sometimes ate (with Eydelman watching), the Post-It note or napkin to destroy evidence of the tip', the agency said in its complaint.
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