Steven Metro, Insider Trading, New Jersey 2016

Defendant Sentenced to 37 Months for Role in $2M Insider Trading Scheme

TRENTON, N.J. – In a shocking turn of events, former managing clerk Steven Metro, 44, was resentenced to 37 months in prison for his role in a five-year insider trading scheme that yielded net profits of more than $2 million, announced U.S. Attorney Craig Carpenito.

Metro, formerly of Katonah, New York, was sentenced today to 37 months in prison. U.S. District Judge Michael A. Shipp imposed the sentence in Trenton federal court.

The scheme, which took place from 2009 to 2013, involved Metro stealing sensitive, confidential information from Simpson Thacher & Bartlett LLP and providing it to his friends, Frank Tamayo and Vladimir Eydelman. Metro would meet Tamayo at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan, where he would provide Tamayo with material information pertaining to corporate transactions, such as mergers and acquisitions or tender offers.

Tamayo would then meet Eydelman, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Eydelman would purchase securities for himself, family members, friends, and clients, including Tamayo, based on the inside information provided by Metro. The conspirators netted more than $2 million in illicit profits over the course of the five-year scheme.

Metro initially pleaded guilty to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud in November 2015. He was sentenced to 46 months in prison in September 2016, but his sentence was vacated by the U.S. Court of Appeals for the Third Circuit in February 2018 and remanded for resentencing after further factual findings pertaining to the total loss amount attributable to Metro.

Metro’s share of the profits had reached approximately $168,000 by October 2013. He sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.

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