Sep 22, 2014
SEC | Litigation Release - September 22, 2014: Securities and Exchange Commission v. Frank Tamayo, Civil Action No. 3:14-cv-05844-MAS-TJB.
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23089 / September 22, 2014
Securities and Exchange Commission v. Frank Tamayo, Civil Action No. 3:14-cv-05844-MAS-TJB
SEC Charges Brooklyn Man for Facilitating Insider Trading Scheme Via Post-It Notes At Grand Central Terminal
The Securities and Exchange Commission charged a Brooklyn man with facilitating a $5.6 million insider trading scheme that typically involved the passing of illegal tips via napkins or post-it notes at Grand Central Terminal.
Earlier this year, the SEC charged a stockbroker and a law firm managing clerk with insider trading and alleged they were connected by a mutual friend who served as a "middleman" in an effort to keep the two unlinked. In a separate complaint filed in U.S. District Court for the District of New Jersey, the SEC now identifies Frank Tamayo as that middleman. The SEC alleges that Tamayo received material nonpublic information from Steven Metro about 13 impending corporate deals involving clients of the law firm where Metro worked. Tamayo then tipped his stockbroker Vladimir Eydelman, who used the confidential information to illegally trade for himself and for Tamayo and other customers. Tamayo allocated a portion of his ill-gotten profits for eventual payback to Metro for the inside information.