TRENTON, N.J. — A man involved in a five-year insider trading scheme that yielded more than $5.6 million in net profits has been sentenced to a year in prison.
Federal prosecutors in New Jersey say Frank Tamayo also must pay slightly more than $1 million in restitution under the sentence imposed Wednesday. The 43-year-old Brooklyn, New York man had pleaded guilty to securities fraud, tender offer fraud and conspiracy charges.
Prosecutors say Steven Metro, a former managing clerk for an international law firm, stole information from the company and gave it to Tomayo, who wrote the security’s ticker symbol on paper or napkin. Tomayo would then meet with Vladimir Eydelman, a broker-trader who memorized the symbol.
Tamayo would then put the paper or napkin in his mouth and chew until it was destroyed.