A broker from Morgan Stanley and a law firm employee have been charged with insider trading wherein the banker was allegedly passing tips on notes and napkins to the latter, his middleman.
The man in question is one Vladimir Eydelman, while his accomplice Steven Metro, who is a managing clerk at Simpson Thacher & Bartlett LLP in New York, was accused of thieving highly confidential data of 13 corporate transactions and tipping a friend who sent the information to Eydelman, according to the reports made for the arrest.
Metro reportedly stole data from Simpson Thacher’s computers and gave him to his accomplice in bars and coffee shops in New York. Eydelman traded from February 2009 to February 2013 that got him earning more than $5.6 million in illegitimate profit.
During his meetings with his middleman, Metro would provide inside information through his mobile phone by indicating the involved companies in the transactions. He would then point out which companies are being bought or sold. Eydelman would then meet the middleman near the large clock at Grand Central to get either the Post-It notes or napkins containing the information, and then the middleman would chew up or eat the notes to destroy any evidence.
Eydelman started his illegal trading at Oppenheimer & Co. (OPY) and stayed there from March 2001 to September 2012, then joined Morgan Stanley to continue his illegal transactions.