Posted Apr 11, 2011 10:02 am CDT
A middleman who allegedly passed confidential merger and acquisition information from a BigLaw attorney to a trader involved in a $109 million insider-trading scheme is expected to plead guilty as early as today to charges of conspiracy and securities fraud, reports the Wall Street Journal (sub. req.), relying on unidentified sources.
Kenneth Robinson is not currently charged in the case. However, he is named as an alleged co-conspirator in a criminal complaint filed last week by federal prosecutors in New Jersey against corporate lawyer Matthew Kluger, 50, and trader Garrett Bauer, 43. Robinson could not be reached for comment and it isn’t clear whether he has a lawyer, the newspaper says.
As detailed in earlier ABAJournal.com posts, Kluger is accused of stealing the insider information allegedly used by Bauer from three major law firms at which he worked during a 17-year period. They are: Cravath Swaine & Moore; Skadden Arps Slate Meagher & Flom; and Wilson Sonsini Goodrich & Rosati.
Prosecutors say the claimed scheme involved some $109 million in trades and $32 million in illegal profits, reports the Cornell Daily Sun.
Additional and related coverage:
ABAJournal.com: “Associate Charged in Alleged $32M Insider Trading Scheme Involving 3 BigLaw Firms”
ABAJournal.com: “Associate Accused of Insider Trading at 3 Big Firms Also Worked for a Fourth—and Sued for Gay Bias”
Bloomberg: “Insider Trading Middleman Robinson Said to Be Pleading Guilty”
DealBook (New York Times): “In Insider Case, a Long-Cold Trail Got Hot”