| Sept 30
Sept 30 A former Morgan Stanley
stockbroker who participated in a $5.6 million insider trading
ring involving stock tips passed on napkins and Post-it notes in
New York's Grand Central Terminal was sentenced to three years
in prison on Friday, federal prosecutors said.
Vladimir Eydelman, 44, was the third and final defendant
sentenced over a scheme that ran from 2009 to early 2014, and
was based on tips about transactions by corporate clients of
Simpson Thacher & Bartlett, a major U.S. law firm.
Eydelman was sentenced by U.S. District Judge Michael Shipp
in Trenton, New Jersey, two years after pleading guilty to fraud
and conspiracy charges. The defendant was also ordered to
forfeit $1.24 million.
Lawyers for Eydelman did not immediately respond to requests
Prosecutors said Steven Metro, a Simpson Thacher managing
clerk, would pass tips about mergers and other transactions the
firm was working on to Frank Tamayo, a mortgage broker he knew
from law school, at mid-town Manhattan bars or coffee shops.
Tamayo would then write the relevant ticker symbols on
napkins or Post-its, pass the tips to Eydelman at Grand
Central's main clock, and then chew up whatever the tips were
written on until they were destroyed, prosecutors said.
The defendants traded ahead of at least 13 transactions,
with Eydelman, formerly of Colts Neck, New Jersey, trading for
himself, family, friends and clients, prosecutors said.
The scheme broke down after Tamayo began to secretly record
the others, prosecutors said.
Tamayo, 43, of Brooklyn, was sentenced to one year in
prison, reflecting his cooperation with prosecutors. Metro, 42,
of Katonah, New York, was sentenced to three years, 10 months in
prison. Both were sentenced this month.
Morgan Stanley and Simpson Thacher have terminated
Eydelman's and Metro's respective employment. Neither firm was
accused of wrongdoing.
The case is U.S. v. Eydelman, U.S. District Court, District
of New Jersey, No. 15-cr-00464.
(Reporting by Jonathan Stempel in New York; Editing by Dan