Fmr BigLaw Associate Charged with Insider Trading Gets Home Confinement
Posted Apr 15, 2011 12:35 PM CST
By Stephanie Francis Ward
Matthew H. Kluger, a lawyer charged last week with insider trading, today was ordered released on $1 million bail, with home confinement and electronic monitoring. The government argued that Kluger was a flight risk, while he told a U.S. District Court of New Jersey judge that he wanted less restrictive bail conditions to care for his three children.
Kluger, 50, was an associate with Wilson Sonsini Goodrich & Rosati, Reuters reports. According to federal prosecutors, he and Garrett D. Bauer, a stock trader, profited from tips Kluger stole while working at Wilson Sonsini Goodrich & Rosati's Washington, D.C. office. According to the government, the tips included Oracle Corp's $7.5 billion takeover of Sun Microsystems Inc., Hewlett Packard Co.'s acquisition of 3Com for $3.1 billion and Intel Corp's buyout of McAfee Inc. for $7.7 billion.
Federal prosecutors also allege that Kluger stole and passed on information from Cravath, Swaine & Moore; Fried, Frank, Harris,Shriver & Jacobson and Skadden, Arps, Slate, Meagher & Flom. According to prosecutors, the alleged actions netted at least $37 million in profits.