Posted Dec 15, 2011 01:01 pm CST
A one-time associate who worked at four different law firms pleaded guilty to insider trading on Wednesday.
Matthew Kluger was accused of passing along information in a scheme that produced more than $37 million in profits over a 17-year-period, report the Washington Post, the Am Law Daily and Bloomberg News.
Kluger’s lawyer, Alan Zegas, says others in the scheme paid Kluger less than $2 million for his tips, an amount he thought was a third of the proceeds, the Post story says.
According to Bloomberg, Kluger admitted passing along information on upcoming mergers while working at four law firms: Wilson Sonsini Goodrich & Rosati; Cravath Swaine & Moore; Skadden, Arps, Slate, Meagher & Flom; and Fried, Frank, Harris, Shriver & Jacobson. Fried Frank had fired Kluger; he responded with a suit accusing the firm of gay bias.
Former trader Garrett Bauer pleaded guilty to his role in the scheme last week, while accused middleman Kenneth Robinson pleaded guilty in April.
ABAJournal.com: “Report: BigLaw Attorney in Insider-Trade Case Didn’t Open Firm Docs, Allegedly Just Used Title Info”