SEC Charges Stockbroker and Law Firm Managing Clerk in Insider Trading Scheme

The SEC charged a stockbroker and a managing clerk at a law firm with insider trading around more than a dozen mergers and other corporate transactions for illicit profits of $5.6 million during a four-year period.

The SEC alleged that Steven Metro, a managing clerk at a law firm in New York, obtained material nonpublic information about corporate clients involved in pending deals by accessing confidential documents in the law firm's computer system. According to the SEC release, Metro then would tip a middleman, who would later tip Vladimir Eydelman, the middleman's stockbroker. Eydelman would then use the illicit tip to illegally trade on behalf of himself and his family members, the middleman and other customers. The middleman allocated a portion of his profits for eventual payment back to Metro in exchange for the insider information. Metro also personally traded in advance of at least two deals.

In a parallel action, the U.S. Attorney's Office for the District of New Jersey announced criminal charges against Metro and Eydelman.