Tuesday, June 5, 2012

Lawyer Kluger gets 12-year sentence for insider trading


Attorney Matthew Kluger was sentenced to 12 years in prison for stealing corporate merger tips from four law firms to fuel an insider-trading scheme that prosecutors said generated $37 million in illegal profits, Bloomberg reports..

Kluger, 51, received his term in federal court in Newark, N.J., where he pleaded guilty on Dec. 14, admitting he stole nonpublic data on about 30 transactions over 17 years. He passed the information to a middleman, Kenneth Robinson, who gave it to trader Garrett Bauer to buy shares. U.S. District Judge Katharine Hayden said he engaged in "thuggish" behavior.

Kluger's sentence was the longest in an insider trading case, and exceeded the 11-year term imposed on Raj Rajaratnam, the co-founder of hedge fund Galleon Group LLC convicted of insider trading at trial last year...

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