Former Investment Fund Employee Criminally Indicted On Federal Charges for Insider Trading in Marvel Stock Prior to Disney Deal
On August 11, 2011, the SEC charged Toby G. Scammell, age 28, with insider trading in a complaint filed in the United States District Court for the Central District of California. The complaint alleged that Scammell spent less than $5,500 on highly speculative call options in Marvel Entertainment, Inc. and reaped illegal profits of over $192,000 less than a month later when it was publicly announced that Marvel was being acquired by the Walt Disney Company. The SEC alleged that Scammell illegally traded on non-public information he misappropriated from his girlfriend, a Disney intern who worked on the acquisition. On June 6, 2012, Scammell consented to the entry of judgment against him and on June 15, 2012, the district court imposed a permanent injunction against Scammell and ordered him to pay disgorgement, prejudgment interest, and civil penalties in amounts to be determined by the court.
In a separate action on October 8, 2013, a federal grand jury returned a criminal indictment charging Scammell with one count of securities fraud and one count of wire fraud based upon his trading in Marvel.
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