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US: SEC eyes insider trading scandal in coal merger

 |  September 24, 2014

The Securities and Exchange Commission has reportedly found evidence of insider trading related to a merger in the coal industry.

Federal officials have reportedly filed a lawsuit that claims three individuals used insider information to illegally benefit from Arch Coal’s acquisition of International Coal Group. According to the SEC, the individuals made more than $5.6 million off their scheming through 13 mergers and acquisitions.

While the lawsuit accuses three men of trading on insider information taken from Simpson Thacher & Bartlette, only one of the men is named. Frank Tamayo is listed as the only defendant. The other two, Steven Metro and Vladimir Eydelman, are named in the complaint as co-conspirators.

Tamayo reportedly pleaded guilty last week to other fraud charges stemming from the same merger deals.

Full content: Businessweek

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