San Francisco man gets jail for insider trading

AP News
Posted: Aug 07, 2014 8:13 PM

LOS ANGELES (AP) — A San Francisco man has been sentenced to three months in federal prison for using insider information to profit off The Walt Disney Co.'s $4 billion purchase of Marvel Entertainment.

Toby Scammell was sentenced Thursday in U.S. District Court in Los Angeles and ordered to pay more than $120,000 to brokers who sold him stock options. He was also ordered to pay the Securities and Exchange Commission $801,000 in a separate civil settlement.

Prosecutors say the 29-year-old was tipped off to the 2009 Marvel acquisition by a girlfriend who worked for Disney. He made a profit of more than $190,000 from the deal.

Scammell pleaded guilty in April to securities fraud through insider trading.

He will be confined to his home for six months after his release from prison.