Man Pleads Guilty to Insider Trading
A New York man has pleaded guilty to trading on confidential information from several law firms in what authorities say was a $37 million insider trading scheme.
Garrett Bauer entered his plea in Newark federal court Thursday.
The 44-year-old admitted to making stock trades based on information co-defendant Matthew Kluger of Virginia allegedly gleaned from Kluger's positions at several prominent law firms. Kluger faces multiple charges.
Prosecutors say Kluger passed the information to Kenneth Robinson of Long Beach, N.Y., who passed the tips in turn to Bauer to make trades for the three men.
Prosecutors say the trio reaped millions on about a dozen mergers and acquisitions.
Robinson has pleaded guilty to his role in the scheme. Bauer must forfeit in excess of $23 million as part of his plea.
(Copyright 2011 by The Associated Press. All Rights Reserved.)