> Record Prison Sentence Imposed on Lawyer for Insider Trading and Money Laundering | COMPETITION LAW

Categories

Archives


Christine Duhaime
(Duhaime’s Anti-Money Laundering Law in Canada)

New York lawyer Matthew Kluger was sentenced yesterday in federal court in New Jersey to 12 years in prison for insider trading. His sentence is the longest term ever imposed for that crime in the U.S.

Kruger stole undisclosed transactional information on approximately 30 deals when he was a corporate lawyer with several U.S. law firms including Cravath, Swain & Moore LLP and Skadden, Arps, Slate, Meagher & Flom LLP. The deals involved Sun Microsystems Inc., 3Com Corp. and Acxiom Corp. According to U.S. prosecutors, trades from the illegal tips generated US$37 million. Kluger tipped off a middleman who subsequently tipped New York securities trader Garrett Bauer, using disposable cellular phones to escape detection. The illegal activity spanned 17 years.

U.S. District Judge Katharine Hayden imposed a harsher sentence on Kluger because he abused his position of trust as a lawyer. Kluger pleaded guilty to conspiracy to commit money laundering, securities fraud, conspiracy to commit securities fraud, and obstruction of justice. The latter were connected to the destruction of cellular phones and computers following an FBI probe into Kluger’s affairs. Bauer and Kluger have forfeited approximately US$20 million to U.S. government agencies, a US$6.65 million condominium in Manhattan and a home in Florida.

____________________

For more information about our regulatory law services contact: contact

For more regulatory law updates follow us on Twitter: @CanadaAttorney

Comments are closed.

    buy-contest-form Templates/precedents and checklists to run promotional contests in Canada

    buy-contest-form Templates/precedents and checklists to comply with Canadian anti-spam law (CASL)

    WELCOME TO CANADIAN COMPETITION LAW! - OUR COMPETITION BLOG

    We are a Toronto based competition, advertising and regulatory law firm.

    We offer business, association, government and other clients in Toronto, Canada and internationally efficient and strategic advice in relation to Canadian competition, advertising, regulatory and new media laws. We also offer compliance, education and policy services.

    Our experience includes more than 20 years advising companies, trade and professional associations, governments and other clients in relation to competition, advertising and marketing, promotional contest, cartel, abuse of dominance, competition compliance, refusal to deal and pricing and distribution law matters.

    Our representative work includes filing and defending against Competition Bureau complaints, legal opinions and advice, competition, CASL and advertising compliance programs and strategy in competition and regulatory law matters.

    We have also written and helped develop many competition and advertising law related industry resources including compliance programs, acting as subject matter experts for online and in-person industry compliance courses and Steve Szentesi as Lawyer Editor for Practical Law Canada Competition.

    For more about us, visit our website: here.