Morgan Stanley’s Vladimir Eydelman and Simpson Thacher Bartlett’s Steven Metro have been charged by both the Securities and Exchange Commission and federal prosecutors in New Jersey. Bloomberg News has reported that, the Wall Street stockbroker and the law firm managing clerk face federal charges, accused of participating in a scheme that accumulated $5.6 million in illicit profits, according to prosecutors.
“Insider trading” is a term that most investors have heard it is the trading of a public company’s stock or other securities, such as bonds or stock options, by individuals with access to non-public information. Insider trading based on inside information is illegal because it is seen as unfair to other investors who do not have access to the information.
Steven Metro, 40, is accused of stealing confidential data on 13 corporate transactions and then tipping off a friend who passed it to broker Vladimir Eydelman, according to the arrest complaint in U.S. court. Vladimir Eydelman, 42, is charged with eight counts of securities fraud, according to NASDAQ and Steven Metro is charged with nine counts. Both men are also charged with four counts of tender-offer fraud. The scheme reportedly ran from February 2009 through February 2013. The SEC said, according to Bloomberg News, that Vladimir Eydelman would meet the middleman near the large clock at Grand Central Station and show him a Post-It note or napkin with the stock ticker symbol of the company to be acquired.
A magistrate judge set bail of $1 million for each one of the men. William Silverman, Vladimir Eydelman’s attorney declined to comment. Attorney for Steven Metro, Michael Rosen stated that the charges are only allegations and his client is presumed innocent, according to Bloomberg News.
Formed in 1935, Morgan Stanley operates in 42 countries and has more than 1300 offices and 60,000 employees. The main areas of business for the firm today are Global Wealth Management, Institutional Securities, and Investment Management. The company reports US $1.9 trillion in client assets under management as of the end of 2013. For more information about employment opportunities with Morgan Stanley readers can click here.
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