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alp227

(32,084 posts) Mon Jun 4, 2012, 09:53 PM Jun 2012

Lawyer Kluger Gets 12-Year Sentence (longest ever insider trading sentence)

Source: BusinessWeek

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.

Kluger, 51, received his term in federal court in Newark, New Jersey, 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.

“People stay out of the stock market, in part, because they think it’s skewed toward the insiders,” Hayden said in passing sentence. “This case has given insight to the lack of credibility for the small investor. The heart of this scheme was a lawyer earning hundreds of thousands of dollars a year at white-shoe firms, one after another.”

Kluger’s sentence was the longest-ever 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.

Read more: http://www.businessweek.com/news/2012-06-04/lawyer-kluger-gets-12-year-sentence

10 replies

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Highlight:

Lawyer Kluger Gets 12-Year Sentence (longest ever insider trading sentence) (Original Post) alp227 Jun 2012 OP

People stay out of the stock market because they raouldukelives Jun 2012 #1

Of all the people to steal tips from, snot Jun 2012 #2

Longest insider trading sentence ever, at only 12 years. Lasher Jun 2012 #3

At what point do evilly crafted financial instruments count as weapons? sudopod Jun 2012 #5

Those instruments are in the 'fountain pen' category. Lasher Jun 2012 #6

But he didn't crash the stock market. uberblonde Jun 2012 #4

My life has been a lot better since: Blue_Tires Jun 2012 #7

Welcome to the crowd. Jackpine Radical Jun 2012 #9

Kluger Jackpine Radical Jun 2012 #8

you are right but so is the judge---all those reasons wordpix Jun 2012 #10

raouldukelives

(5,178 posts)

1. People stay out of the stock market because they

Reply to alp227 (Original post)

Mon Jun 4, 2012, 10:02 PM

Jun 2012

don't want to help or profit from causing massive climate change, denial of health care claims, child labor, polluting of streams & oceans, massive deforestation and the takeover of our government and future by corporations.
If those things don't bother you, by all means, feel free.

snot

(10,549 posts)

2. Of all the people to steal tips from,

Reply to alp227 (Original post)

Mon Jun 4, 2012, 10:10 PM

Jun 2012

lawyers might be among those most likely to succeed in making you sorry.

Lasher

(27,684 posts)

3. Longest insider trading sentence ever, at only 12 years.

Reply to alp227 (Original post)

Mon Jun 4, 2012, 10:18 PM

Jun 2012

For a theft of $37 million, this was neither justice nor a deterrent.

Some will rob you with a six-gun,
And some with a fountain pen.

sudopod

(5,019 posts)

5. At what point do evilly crafted financial instruments count as weapons?

Reply to Lasher (Reply #3)

Tue Jun 5, 2012, 12:15 AM

Jun 2012

This hurt more people than many an armed robbery.

Lasher

(27,684 posts)

6. Those instruments are in the 'fountain pen' category.

Reply to sudopod (Reply #5)

Tue Jun 5, 2012, 05:43 AM

Jun 2012

We don't use fountain pens much these days but a lot of things have remained the same.

uberblonde

(1,215 posts)

4. But he didn't crash the stock market.

Reply to alp227 (Original post)

Mon Jun 4, 2012, 10:37 PM

Jun 2012

The people who did go free. In fact, some of them are presidential advisers.

Blue_Tires

(55,445 posts)

7. My life has been a lot better since:

Reply to alp227 (Original post)

Tue Jun 5, 2012, 09:43 AM

Jun 2012

1. Pulling my meager 401k pennies out of the stock market

2. Ending my self-delusion that the market is anything other than a rigged game, and that anyone has ever made a legit, honest fortune from it

3. Ending my self-delusion that the market has any major effect whatsoever on my daily life or the economy as a whole...

Jackpine Radical

(45,274 posts)

9. Welcome to the crowd.

Reply to Blue_Tires (Reply #7)

Tue Jun 5, 2012, 10:34 AM

Jun 2012

I have my few shekels stashed in places like credit union-backed CDs. No interest, but shielded under enough layers of protection that if they go, there wouldn't be anyplace left to spend them anyway.

Jackpine Radical

(45,274 posts)

8. Kluger

Reply to alp227 (Original post)

Tue Jun 5, 2012, 10:32 AM

Jun 2012

war wahrscheinlich nicht so klug.

wordpix

(18,652 posts)

10. you are right but so is the judge---all those reasons

Reply to alp227 (Original post)

Tue Jun 5, 2012, 10:55 AM

Jun 2012

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