Trio Arrives at US$32 Million Settlement With SEC
27 April 2012
The United States (US) Securities and Exchange Commission (SEC) has announced that its charges (25 April 2012) against three people engaging in a insider trading scheme have been settled by the trio. According to the SEC, attorney Matthew Kluger, Wall Street trader Garrett Bauer and their mutual friend and middleman Kenneth Robinson operated the scheme in relation to “at least 11 merger and acquisition announcements involving clients of the law firm where ... [Mr Kluger] worked”. Mr Kluger, Mr Bauer and Mr Robinson have “each agreed to give up their ill-gotten gains plus interest”, amounting to “[US]$31.6 million for [Mr] Bauer, [US]$516,000 for [Mr] Kluger, and [US]$845,000 for [Mr] Robinson”. Mr Bauer has agreed to settle another SEC proceeding “that would bar him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognised statistical rating organisation, and from participating in any offering of a penny stock”. Mr Kluger has also agreed to settle a similar proceeding “which would permanently suspend him from appearing or practicing before the SEC as an attorney”.
SEC’s media release (25 April 2012)
Related news item:
Reuters: Trio settles SEC insider trading suit for $33 million (25 April 2012)
(Source: SEC; Reuters)