US Attorney Pleads Guilty to Insider Trading
16 December 2011
Bloomberg reports that United States Attorney Matthew Kluger has pleaded guilty to “stealing corporate merger tips from four law firms to fuel an insider trading scheme that prosecutors said generated US$37 million in illegal profits”. Reportedly, Mr Kluger admitted in court “that he stole nonpublic data on about 30 corporate transactions over 17 years”, passing tips to a middleman who then gave them to trader Garrett Bauer to buy shares. “When then the deals went public, Bauer sold shares and gave cash to his partners”, reports Bloomberg.
Bloomberg: Kluger Pleads Guilty in Law-Firm Insider Trading Scheme (15 December 2011)
New York Times: Trader Pleads Guilty in 17-Year Investment Scheme (8 December 2011)
(Source: Bloomberg, New York Times)