A Wall Street stockbroker and a managing clerk at a law firm face federal charges the two engaged in an insider-trading scheme that netted $5.6 million in illegal profits.
Both the Securities and Exchange Commission and federal prosecutors in New Jersey charged Morgan Stanley’s Vladimir Eydelman and Simpson Thacher Bartlett’s Steven Metro with participating in a scheme that ran from February 2009 through February 2013 and involved trades on more than a dozen mergers and other corporate transactions.
The two men were arrested Wednesday. Mr. Eydelman is charged with eight counts of securities fraud, while Mr. Metro is charged with nine counts. Both are charged with four counts of tender-offer fraud.
Morgan Stanley said Mr. Eydelman, who joined the firm from Oppenheimer & Co. in September 2012, had been placed on leave pending further review.
“We were just informed of the arrest this morning and will cooperate fully with the authorities as they pursue this matter,” Morgan Stanley spokesman James Wiggins said. “Obviously we don’t tolerate insider trading and will take appropriate action based on the facts.”