{"id":41243,"date":"2014-03-20T08:13:36","date_gmt":"2014-03-20T12:13:36","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=41243"},"modified":"2014-03-20T08:17:16","modified_gmt":"2014-03-20T12:17:16","slug":"sec-charges-two-in-insider-trading-deal","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2014\/sec-charges-two-in-insider-trading-deal.html","title":{"rendered":"SEC Charges Two In Insider Trading Deal Where Middleman Ate The Evidence"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Screenshot-2014-03-20-12.10.43.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-41246 alignright\" alt=\"Screenshot via SEC\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Screenshot-2014-03-20-12.10.43.jpg\" width=\"324\" height=\"454\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Screenshot-2014-03-20-12.10.43.jpg 324w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/03\/Screenshot-2014-03-20-12.10.43-214x300.jpg 214w\" sizes=\"auto, (max-width: 324px) 100vw, 324px\" \/><\/a>New York (HedgeCo.Net) &#8211; A stockbroker and a managing clerk at a hedge fund law firm have been charged with insider trading and making illicit profits of $5.6 million during a four-year period, Reuters reports.<\/p>\n<p>Vladimir Eydelman and Steven Metro were linked through a mutual friend who acted as a middleman in the illegal trading scheme, the SEC says.<\/p>\n<p>Metro obtained nonpublic information, then tipped the middleman during meetings at a New York City coffee shop. The unnamed middleman, according to the SEC, would then meet up with\u00a0Eydelman, who was a registered representative at Oppenheimer and is now at Morgan Stanley, showing him a post-it note or napkin with the relevant ticker symbol. The middleman is reported to have &#8220;chewed up and sometimes even ate the note or napkin&#8221; afterwards.<\/p>\n<p>In a parallel action, the U.S. Attorney\u2019s Office for the District of New Jersey today announced criminal charges against Metro, who lives in Katonah, N.Y., and Eydelman, who lives in Colts Neck, N.J.<\/p>\n<p>\u201cLaw firms are sanctuaries for the confidential treatment of client information, and this scheme victimized not only a law firm but also its corporate clients and ultimately the investors in those companies,\u201d said Daniel M. Hawke, chief of the SEC Enforcement Division\u2019s Market Abuse Unit. \u201cWe are continuing to combat serial insider trading schemes, particularly by law firm employees and other professionals who are entrusted with extremely sensitive market-moving information.\u201d<\/p>\n<p>According to the SEC\u2019s complaint, Eydelman also traded on inside information in the accounts of more than 50 of his brokerage customers. The middleman\u2019s agreement with Metro resulted in more than $168,000 being apportioned to Metro as his share of profits from the insider trading scheme in addition to his profits from personally trading in advance of at least two transactions.<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; A stockbroker and a managing clerk at a hedge fund law firm have been charged with insider trading and making illicit profits of $5.6 million during a four-year period, Reuters reports. Vladimir Eydelman and Steven Metro [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,16047],"tags":[],"class_list":["post-41243","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=41243"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41243\/revisions"}],"predecessor-version":[{"id":41251,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/41243\/revisions\/41251"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=41243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=41243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=41243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}