Lawyer admits to $37 million insider-trading scheme
Over a period of 17 years, an attorney has been duping a handful of the countrys top law firms.
December 15, 2011 at 05:51 AM
2 minute read
The original version of this story was published on Law.com
Over a period of 17 years, an attorney has been duping a handful of the country's top law firms.
Matthew Kluger pleaded guilty yesterday to stealing secrets about pending corporate mergers and acquisitions from his employers—which over the years have included major law firms such as Cravath Swaine & Moore; Skadden, Arps, Slate, Meagher & Flom; Fried, Frank, Harris, Shriver & Jacobson; and Wilson Sonsini Goodrich & Rosati—and using the stolen information to conduct an elaborate insider-trading scheme. The scam spanned nearly two decades and garnered more than $37 million in profits.
“Not only did Matthew Kluger defraud the investing public, he betrayed the colleagues and clients who depended on his confidentiality in some of the biggest deals of the last decade,” Paul Fishman, U.S. Attorney for the District of New Jersey, said in a statement. “In order to be confident in our markets, investors must have comfort that those with inside information won't abuse positions of trust for personal gain.”
Kluger pleaded guilty to one count each of conspiracy to commit securities fraud, securities fraud, conspiracy to commit money laundering and obstruction of justice. Two other individuals—Garrett Bauer and mortgage broker Kenneth Robinson—pleaded guilty for their involvement in the scheme earlier this year.
According to Thomson Reuters, Kluger's attorney said Kluger participated in the scheme “for selfish reasons that he recognizes and feels terribly sorry about.”
Kluger's sentencing is scheduled for April 9, 2012. He faces up to 20 years each on the charges of securities fraud, conspiracy to commit money laundering and obstruction of justice, and the securities fraud conspiracy charge could earn him five years in prison.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllWhite Castle GC Becomes Chain's First President From Outside Family
CFPB Finalizes Rule Removing Medical Debt From Credit Reports
Trending Stories
- 1Sidley Cross-Border Transactions Partner Heads to Winston & Strawn
- 2Another Latham Partner Exits for Sidley
- 3Clark Hill Adds Franchise Law Group to Growing Atlanta Office
- 4DLA Piper Adds Former Verizon GC Amid In-House Hiring Spree
- 5'I Couldn't Believe It': Attorney Jim Walden Petitions US Court for Right to Run for NYC Mayor as an Independent
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250