Tuesday, June 5, 2012

Confessions Of An Inside Trader





Garrett Bauer stood in a New York University lecture hall and warned 150 students not to emulate him. The day trader recounted illegally making millions of dollars over 17 years using corporate merger tips stolen by an attorney Bloomberg reports.

 “I’m here hoping you won’t commit the same crime I committed, insider trading,” Bauer told the students at NYU’s Stern School of Business in February. “I feel remorse. That’s why I’m here. It’s my way of trying to apologize to everyone for what I’ve done and try to make amends.”
Bauer described Robinson’s betrayal, his own arrest and five-night jail stay in April 2011, and guilty pleas by all three men in one of the largest insider-trading cases of the past decade.
Bauer and Kluger, 51, are scheduled to be sentenced today by U.S. District Judge Katharine Hayden in Newark, New Jersey. Bauer faces nine to 11 years in prison under federal guidelines, and Kluger faces 11 to 12 years.

Hayden will decide whether Bauer deserves an 11-year term like that given to Raj Rajaratnam, the co-founder of hedge fund Galleon Group LLC convicted of insider trading last year.
Bauer said he hopes that his “scared straight” message, delivered in 147 speeches since last fall at business schools, law schools, churches and synagogues, will move the judge to grant him leniency. Sentencing judges can consider whether a defendant has accepted responsibility and shown remorse for his acts....

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