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.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…