A former Morgan Stanley stockbroker who was charged with insider trading earlier this year was ordered by a FINRA arbitration panel to pay back more than $3 million in promissory notes to the firm.
The FINRA arbitrators determined that Vladimir Eydelman owed Morgan Stanley the signing bonus he received, plus interest, when he joined the firm in 2012 after nine years with Oppenheimer, according to FINRA broker records.
Eydelman, who could not be reached for comment, was already involved in an insider trading scheme with an intent to deceive, when he joined Morgan Stanley, according to a complaint filed in March by the SEC.
The illegal trading earned Eydelman and two partners more than $5.6 million over four years, according to the SEC, and involved Eydelman getting insider information from a co-conspirator he would meet at New York's Grand Central Station. To destroy evidence, the tipster would sometimes eat his notes, the SEC complaint noted.
Eydelman was employed with Morgan Stanley for less than two years when law enforcement officials arrested him in March. Morgan fired him immediately, and filed its breach of promissory note claim with FINRA on April 8.
The former stockbroker represented himself before the arbitration panel, which convened in New York and gave their award ruling on Sept. 25. He submitted no statements for the record.
Morgan Stanley spokeswoman Christine Jockle said the firm had no comment on the arbitration panels decision.
- Wells Fargo Slapped With $5M Penalty for Inadequate Controls
- SEC Again Targets Ex-LPL Advisor in $2M Fraud Case
- Hammered by FINRA in Dispute With Morgan Stanley, Advisor Pays $200K
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access