On September 16, Vladimir Eydelman, a broker-dealer, pled guilty to participating in a five-year conspiracy to trade on merger and acquisition information stolen from a prominent international law firm.  According to court documents, the conspiracy worked as follows: Steven Metro, the managing clerk of the New York office of Simpson Thatcher & Bartlett LLP, obtained nonpublic information about pending transactions by searching the law firm’s computer system.  Metro then disclosed this information to his former law school classmate, Frank Tamayo.  Tamayo, who was Eydelman’s client, would then meet with Eydelman in midtown Manhattan.  He would often write the ticker symbol of the company whose securities would be purchased on a napkin; once Eydelman memorized the information, Tamayo would place the paper or napkin in his mouth and chew it until it was destroyed.  Eydelman then traded on the information.  In total, the scheme netted more than $5.6 million in profits.  Eydelman pled guilty to one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud.  Tamayo pled guilty to the same charges in September 2014.  The alleged source of the information, Metro, has pled not guilty and is scheduled to go to trial in February.  United States v. Eydelman, 15-cr-464 (D.N.J.).  DOJ Press Release

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