US lawyer sentenced to record 12 yrs for insider trading

NEW YORK, June 5: A US lawyer who worked for some of the country’s most prestigious firms was sentenced to a record 12 years jail for an insider trading scheme which lasted 17 years and netted more than 37 million dollar between 1994 and 2011.
Matthew Kluger’s sentence is the longest ever handed down in an insider trading case and is one year longer than the 11 year jail term imposed last year on Galleon Group hedge fund founder Raj Rajaratnam for insider trading charges.
Kluger was sentenced by US District Judge Katharine Hayden of Newark federal court. Hayden also sentenced stock trader Garrett Bauer to nine-years jail for his role in the scheme and a third person, Kenneth Robinson, is scheduled to be sentenced today.
“The severe sentences imposed today are a warning to anyone trying to game the financial markets for their own enrichment,” said New Jersey US Attorney Paul Fishman in a statement yesterday.
An attorney for Kluger said he planned to appeal against the sentence. “It is unduly harsh and fails to reflect that Mr Kluger received only a fraction of the proceeds from the offense,” said attorney Alan Zegas.
An attorney for Bauer did not return a call seeking comment.
Federal prosecutors and securities regulators accused the trio of trading on inside information ahead of at least 11 corporate deals.