A San Francisco man was sentenced Thursday to three months in federal prison for using insider information five years ago to profit off The Walt Disney Co.’s $4 billion purchase of Marvel Entertainment.
Toby G. Scammell was sentenced on Thursday to three months is federal prison for using knowledge of Disney’s impending purchase of Marvel for financial gain. In addition Scammell was ordered to pay more than $120,000 to brokers who sold him stock options. Scammell also owes the Securities and Exchange Commission $801,000 in penalties and interest in a separate civil settlement.
Scammell’s former girlfriend who worked in Disney’s corporate strategy group, told him that Disney planned to acquire a company “people would recognize right away.” He knew, due to consulting work he had done, that Disney was interested in Marvel.
The former girlfriend was not charged.
Scammell bought call options in Marvel stock for around $5,500 and sold them after deal was announced and Marvel stock rose approximately 25%.