SEC Sues 26-Year Old On Charges He Made $200,000 Insider Trading Off Ex-Girlfriend's Work Project

Can you trust your roommate not to insider trade on one of your work projects?

You’d hope so, especially if they were your significant other. But a new SEC case against a 26-year old accused of insider trading on info he allegedly obtained from his girlfriend, who was working on Disney’s acquisition of Marvel, might make you think twice first.

The lawsuit against him says Toby Scammell either overheard his live-in ex-girlfriend’s work-related conversations, viewed work documents she brought home, or saw documents she had on her computer or Blackberry, and/or spoke with her about the deal so that he had enough information to make $192,496.61 — profits he never told her about.

It’s not evident that Scammell’s girlfriend, whom he met at Bain & Company, a consulting firm, faced any negative repercussions at work, but her close involvement in the case has obviously taken up valuable time.

It all started when she got an “externship” (more hands on and high level than an internship) at Disney in the Corporate Strategy Department and excitedly told her boyfriend about it. He was 24 at the time and vacationing in Africa, so she emailed him.

Scammell and his girlfriend had been dating for exclusively for 2 years so naturally, they spoke about confidential subjects.

Scammell moved in with her a couple of weeks later. Around this time, she gave him the password to her Blackberry.

The SEC says he discovered the name of the target, Marvel, by overhearing her conversations, seeing documents in their home or on her computer or Blackberry, or speaking with her.

The SEC probably became suspicious because his purchase of call options sometimes represented over 90% of the market volume that day

Scammell turned about $5,500 into over $192,000 -- profits he allegedly never told his ex-girlfriend about

So he made some mistakes, but at least Scammell wasn't as obvious as these guys

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