By the time he was in his mid-30’s, Matthew Kluger had connections to three big law firms and seemed destined for the stratosphere of corporate law and the pay and perks that go with such a lofty status. Now, at age 50, he is destined for prison for insider trading.
Kluger pleaded guilty on Wednesday in Newark federal court to conspiracy to commit securities fraud, securities fraud, conspiracy to commit money laundering and obstruction of justice, Paul J. Fishman, the United States Attorney for New Jersey, announced.
“Not only did Matthew Kluger defraud the investing public, he betrayed the colleagues and clients who depended on his confidentiality in some of the biggest deals of the last decade,” Fishman said.
As Main Justice reported in April, Kluger, of Oakton, Va., worked from 1994 to 1997 as a summer associate and later as a corporate associate at Cravath, Swaine & Moore LLP in New York. From 1998 to 2001, he worked at Skadden, Arps, Slate, Meagher & Flom as an associate in the corporate department. From December 5, 2005 to March 11, 2011, he worked at Wilson Sonsini Goodrich & Rosati as a senior associate in the mergers and acquisitions department of the firm’s Washington office.
Kluger and co-conspirators Garrett D. Bauer, 44, of New York, and Kenneth Robinson, 45, of Long Beach, N.Y. engaged in an insider trading scheme that began in 1994, Fishman said. Kluger admitted that he passed inside information to Bauer and Robinson that the men used to trade ahead of more than 30 different corporate transactions, reaping well over $30 million in illicit gains.
Kluger entered his guilty plea before U.S. District Judge Katharine S. Hayden, who set sentencing for April. He faces up to 20 years in prison and was ordered to pay restitution of $415,000 for his recent illegal trades. Bauer and Robinson have also pleaded guilty and are awaiting sentencing.