Robot 6

Man sentenced for insider trading in Disney-Marvel deal

disney-marvel-logoA San Francisco man was sentenced Thursday to three months in federal prison and ordered to pay $122,000 in restitution after pleading guilty to using insider information to make big bucks in Disney’s purchase of Marvel.

Law360 reports that in 2009, Toby G. Scammell was told by his girlfriend, a Disney extern working on the Marvel acquisition, that the entertainment giant was planning to buy a company “people would recognize right away.” Using her work schedule and their vacation plans, he was able to deduce when the deal would likely close, and learned from his then-employer — a consulting firm that had been contracted by Disney on occasion — that the company was interested in Marvel.

Scammell, who was then 24 years old, used that information to acquire 659 call options to buy Marvel stock for $5,465, more than half from his brother’s account (he never told his brother or his girlfriend). Marvel’s stock jumped 25 percent when Disney announced the acquisition on Aug. 31, 2009, earning Scammell more than $192,000.

Scammel pleaded guilty in April to one count of securities fraud through insider trading. In addition to the prison sentence and restitution, he’ll have to serve six months of home confinement and pay more than $800,000 in a related civil action brought by the U.S. Securities and Exchange Commission.

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5 Comments

Most ironic last name ever…

See, this is what happens when you’re 24 years old and have never watched Wall Street. I’d be surprised if he even knew what Insider-Trading was.

Sounds sketchy for sure, but I don’t see the big deal. Guy did a lot of work to figure out that the Disney/Marvel deal was going to happen, it’s not like someone just told him.

I’m not even 100% convinced insider trading should be illegal. If it were legal the information insider traders are using to make their trades would start to be factored into stock prices, and make it that much harder for anyone to game the system.

Meanwhile, some greedy millionnaires in the world had that information to make themselves richer without gettting cought. Nuff Said!

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