Aug 7 A 29-year-old San Francisco man was
sentenced to three months in federal prison on Thursday after he
pleaded guilty to insider trading ahead of news that Marvel
Entertainment Inc would be bought by Walt Disney Co.
Toby Scammell, a former associate at California investment
firm, Madrone Capital Partners, admitted in April to illegally
making $192,000 in August 2009 by purchasing stock options to
buy Marvel stock just before Marvel's acquisition by Disney,
where his girlfriend was working.
In addition to the prison sentence, U.S. District Judge
James Otero in Los Angeles ordered Scammell to pay restitution
of about $122,494 to the victim broker-dealers.
Scammell earlier had been ordered to pay civil penalties and
interest of $800,985 in a civil action filed by the Securities
and Exchange Commission.
Scammell admitted that he had learned that Disney planned to
acquire a company "that people would recognize right away" from
his then-girlfriend, who was working as an extern at Disney in
the summer of 2009.
Later, Scammell learned from a supervisor at his
then-employer that Disney had earlier been interested in
acquiring Marvel. Scammell used the information to acquire 659
call options to purchase Marvel stock for $5,465, according to
Immediately after Disney's public announcement of the deal,
Scammell sold his options, realizing more than $192,000 in
Scammell's attorneys could not immediately be reached for
The case is U.S. v. Scammell, U.S. District Court, Central
District of California, No. 13-cr-00733.
(Reporting by Kanika Sikka in Bangalore; Editing by Leslie