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The Daily

No Monetary Penalty for Paper-eating Law Clerk Linked to Insider Trading Case

Chris Gaetano
Published Date:
Jul 14, 2015
PaperEaterThe Securities and Exchange Commission has announced that, due to his extensive cooperation, a managing law clerk who would pass insider information to a stockbroker via napkins or post-it notes he would then eat will not face monetary penalties for his role in the scheme. The Brooklyn man, Frank Tamayo, acted as a go-between for a law firm clerk and a stock broker to exchange information about companies that would be acquired, writing the ticker symbol of the company on either a napkin or post-it note before, after showing it to the broker, cramming it into his mouth and eating it, said the SEC. The broker would then make the trades. Perhaps realizing he bit off more than he could chew, Tamayo provided some meaty information for the SEC's investigation into the matter. 

While not facing any other penalties, he will, however, be required to disgorge $1 million he made from the illegal scheme and continue to act as a witness for the commission's case against the law firm clerk Steven Metro of Katonah, N.Y. and the stockbroker, Vladimir Eydelman of Colts Neck, N.J.