Washington lawyer pleads guilty to securities fraud

Washington lawyer Matthew Kluger pled guilty on Wednesday to securities fraud, obstruction of justice and other charges. The charges maintained that over the course of 17 years as a corporate lawyer Kluger stole inside information from Cravath Swaine & Moore, Skadden, Arps, Slate, Meagher & Flom, Fried Frank, and Wilson Sonsini Goodrich & Rosati, and passed it to co-conspirators. The operation was said to have brought in over $37 million in illicit profits, though Kluger claimed that he received less than $2 million and thought he was being given roughly a third of the proceeds. Kluger made a plea agreement, gave the government information about others that he believed to be involved in insider trading, and agreed to forfeit $415,000 that he had obtained from recent transactions in the scheme. Sentencing is due to occur in April.

Washington lawyer pleads guilty to securities fraud washingtonpost.com Sat, Dec 17, 2011