| Sept 21
Sept 21 A mortgage broker who was the middleman
in an insider trading ring involving stock tips passed on
napkins and Post-its in New York's Grand Central Terminal to a
Morgan Stanley stockbroker was sentenced to one year in
prison on Wednesday.
Frank Tamayo, 43, 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 pay $1.06 million in restitution.
Tamayo was sentenced one week after Steven Metro, a former
managing clerk at law firm Simpson Thacher & Bartlett who
provided the tips, was ordered to serve 46 months, or nearly
four years, in prison.
Vladimir Eydelman, the stockbroker, who made an estimated
$5.6 million on his illegal trades, is scheduled to be sentenced
on Sept. 30. Tamayo served as a cooperating witness against
Eydelman and Metro.
"The sentencing is the last step in Mr. Tamayo trying to put
this behind him and move on with his life," Tamayo's lawyer Ross
Pearlson said in an interview. "As the government noted, his
cooperation was exceptional and helped in securing the guilty
pleas of his co-defendants."
Prosecutors said Metro would pass tips about mergers and
other transactions that his firm was working on to Tamayo, a
friend and law school classmate, who would write relevant ticker
symbols on napkins or Post-its.
Tamayo would then pass the tips to Eydelman at Grand
Central's main clock and afterward chew up whatever the tips
were written on, prosecutors said.
The scheme unraveled in early 2014 after Tamayo began to
secretly record the other defendants.
Tamayo could have been sentenced to between 46 and 57 months
in prison under recommended federal guidelines. The one-year
term reflected his cooperation, prosecutors and Pearlson said.
Neither Morgan Stanley nor Simpson Thacher was accused of
The case is U.S. v. Tamayo, U.S. District Court, District of
New Jersey, No. 14-cr-00542.
(Editing by Steve Olofsky)