A mortgage broker known as the napkin middleman in an insider trading ring pleaded guilty for his part in the alleged scheme, which consisted of stock tips provided by a worker at an NY law firm.
Frank Tamayo, 41, gave himself up to the FBI last week and pleaded guilty to a single count of conspiracy to commit fraud, a single count of securities fraud, and one count of tender offer fraud.
Tamayo was the primary source for inside trading tips that ex-clerk Steven Metro picked up from the law firm’s computers. He then handed the information to Vladimir Eydelman, a broker dealer.
Metro shared inside tips to a friend on a number of meetings. His friend then passed on the tip to a stockbroker.
Eydelman, 42, then traded on the information acquired. The scheme was said to have netted over $5 million.
Tamayo will face a maximum 5-year prison penalty plus a $250,000 fine and a maximum potential penalty of 20 years in jail including a $5 million fine.