Man accused of eating stock-tip notes pleads guilty in insider trading case involving BigLaw clerk
A former mortgage broker has pleaded guilty to passing along stock tips allegedly gleaned from a managing clerk in the New York City office of Simpson Thacher & Bartlett.
Frank Tamayo, 41, pleaded guilty on Friday, report the Wall Street Journal Law Blog and the New York Times DealBook blog. Prosecutors had said Tamayo jotted down ticker symbols on napkins and sticky notes, showed them to his stockbroker at Grand Central Terminal, and then ate the notes to destroy the evidence. The five-year scheme allegedly produced $5.6 million in profits on $33 million in stock trades.
The Simpson Thacher clerk, Steven Metro, has pleaded not guilty. Metro has a law degree and knew Tamayo from law school, according to prior coverage. He did not practice law at Simpson Thacher.
In a statement provided to the ABA Journal in March, Simpson Thacher said it had no knowledge of Metro’s alleged wrongdoing and fired him on the day he was charged. The alleged behavior “is completely inconsistent with our values, our culture and the strict policies we have in place to protect client confidences,” the firm said.
Tamayo pleaded guilty to securities and tender offer fraud, and conspiracy to commit securities and tender offer fraud, according to the Law Blog and this press release.
