NEWARK (CN) – The SEC on Wednesday settled a $32 million inside trading case against a corporate attorney and Wall Street trader and a separate, related case against their friend, the commission said.
The SEC sued three men: two in one federal complaint, and a third in another.
“(T)he insider trading occurred in advance of at least 11 merger and acquisition announcements involving clients of the law firm where the attorney – Matthew H. Kluger – worked,” the SEC said in a statement. “He and the trader, Garrett D. Bauer, [who were charged together] were linked through a mutual friend now identified as Kenneth T. Robinson, who acted as a middleman to facilitate the illegal tips and trades [and was charged separately]. Kluger and Bauer used public telephones and prepaid disposable mobile phones to communicate with Robinson in an effort to avoid detection. Robinson, now also charged, cooperated in the SEC’s investigation.
“Bauer, Kluger, and Robinson each agreed to give up their ill-gotten gains plus interest in order to settle the SEC’s charges. Those amounts under the terms of their consent agreements are approximately $31.6 million for Bauer, $516,000 for Kluger, and $845,000 for Robinson,” according to the SEC.