SEC Bars Fraudster Who Earned Longest Insider Sentence

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.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note