Friday, April 15, 2011
A Jewish Lawyer charged in $34M insider scheme freed on bail
NEWARK, N.J. — A former lawyer accused of being the inside man in a $34 million insider trading scheme left a federal court in New Jersey on bail Friday.
Matthew Kluger posted $500,000 of a $1 million bond. He must follow home detention rules set when he returns to Virginia.
Kluger didn’t say anything and did not enter a plea.
Authorities say Kluger took privileged information about upcoming mergers from law firms where he worked and passed it to a middleman who then passed it to stock trader Garrett Bauer. Prosecutors say Bauer then placed trades for all three men.
Kluger and Bauer face multiple counts of insider trading as well as obstruction and money laundering.
The middleman, Kenneth Robinson of Long Beach, N.Y., admitted to his role in the scheme this week.