Colts Neck Man Charged in Insider Trading Scheme

A Colts Neck man allegedly participated in an insider trading ring involving $33 million in trades and netting $5.6 million in profits.

Vladimir Eydelman, 42, a professional stock broker who worked at Oppenheimer & Co. and Morgan Stanley, was arrested Wednesday and charged in the multi-year scheme.

Eydelman and Steven Metro, 40, of Katonah, N.Y., a managing clerk for New York office of international law firm Simpson Thacher & Bartlett LLP, were named in the complaint, New Jersey U.S. Attorney Paul J. Fishman announced. 

While at the law firm, Metro repeatedly obtained inside information regarding anticipated corporate mergers and acquisitions on which his firm was working, according to Fishman. He allegedly disclosed the information to a friend, who later became a cooperating witness with the U.S. Attorney's Office.

The cooperating witness would then meet with Eydelman, usually the same day, to divulge the stolen information, Fishman said. These meetings usually occurred at an agreed-upon location near the large clock in New York City’s Grand Central Terminal. The witness would allegedly show Eydelman the paper or napkin on which the ticker symbol information of the company whose securities should be purchased was written. After Eydelman memorized the ticker symbol, the witness then would place the paper or napkin into his mouth and chew it until it was destroyed, Fishman said.

Eydelman purchased securities for himself, family members, friends and clients, including the cooperating witness. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose, Fishman said.

Eydelman and Metro were both charged with conspiracy to commit securities fraud and tender offer fraud and multiple counts of securities fraud and tender offer fraud. Metro is also charged with nine counts of securities fraud, and Eydelman is charged with eight counts of securities fraud.