Sunday, 25 September 2016
Last updated 1 day ago
Jun 21 2012 | 10:43am ET
Fraudsters Matthew Kluger and Garrett Bauer weren't going to have to worry about their futures in the financial industry. But in case they had any ideas, the Securities and Exchange Commission moved to squelch them last week.
The regulator barred Bauer from the industry and suspended Kluger from appearing or practicing before it as a lawyer. Both men pleaded guilty to running an insider-trading scheme, in which Kluger tipped a broker, who in turn tipped Bauer, about impending mergers. The fraud ran from 1994 until the broker's arrest last year.
Of course, being barred by the SEC is the least of the two men's problems. Bauer was sentenced to nine years in prison for his crimes, and Kluger 12—the longest insider-trading sentence in U.S. history.