Two men have been charged in a stockbroker fraud bust after making over $32 million. Garrett Bauer and Matthew Kluger were charged and arrested by the FBI on Wednesday, April 6, 2011 for using stolen information to net millions.
The New York stockbroker and Washington D.C. attorney have been charged for the insider trading scheme that allegedly lasted for 17 years. They allegedly netted over $32 million during that time period.
The D.C. attorney, Mr. Kluger, allegedly used his senior associate position at Wilson Sonsini Goodrich & Rosati to obtain confidential information about pending deals in the mergers and acquisitions department. The information was passed through a middle man and then forwarded to the stockbroker, Mr. Bauer.
Mr. Bauer has been accused of using the sensitive information to purchase shares in the involved companies. Once the pending deals became public knowledge and the company's stock jumped, Mr. Bauer would then quickly sell the stock. The profits were then shared among the three alleged suspects.
According to U.S. Attorney for New Jersey, the three men netted over $32 million collectively.
The identity of the middle man has not been made known. Court documents indicate that the middle man is cooperating with federal investigators.
"I can't sleep," Mr. Bauer has been quoted as saying. "I'm waiting for the FBI to ride into my apartment. And I'm on edge all night thinking that they're coming in."