NEW YORK/NEWARK, New Jersey (Reuters) – A lawyer and a trader were accused by federal prosecutors of running a 17-year conspiracy to trade on corporate merger secrets stolen from three of the nation’s most powerful law firms, in one of the largest U.S. insider trading cases on record.
Prosecutors accused Matthew H. Kluger and Garrett D. Bauer of reaping more than $32.2 million from trades on tips about upcoming mergers and acquisitions that Kluger learned as a lawyer at Wilson Sonsini Goodrich Rosati PC, the pre-eminent firm representing Silicon Valley technology companies.
The complaint details a conspiracy that had its origins in Atlantic City, New Jersey, and ended with attempts by the defendants to cover their tracks, including a discussion about cleaning money in a washing machine to rid it of fingerprints.
Kluger also regularly leaked information he learned when he worked previously at two other law firms, Cravath Swaine Moore LLP and Skadden, Arps, Slate, Meagher Flom LLP, prosecutors said. Wednesday’s charges do not cover any trades that may have been made at that time. For a graphic on top MA law firms, clickhttp://r.reuters.com/tap88r
The charges come amid a broad government crackdown on insider trading. This includes the criminal trial
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