Call Now For a Free Consultation:
(614) 502-6165

Two Charged in Stockbroker Fraud Bust

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."

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram