Arrest Warrants Out For Alleged Ringleaders Of $32 Million M&A Insider Trading Scheme

 

As part of an ongoing crackdown on insider trading, the SEC has accused lawyer Matthew Kluger of passing on the advance scoop on several big deals to trader Garrett Bauer via an unidentified third party.

 

The two men had been working together -- although at a distance -- for at least six years. The last known time Bauer profited from Kluger's knowledge of which companies were about to merge was back in February, when he made about $2 million in early-bird trading in Zoran Corp.

 

Bauer then kicked back at least $500,000 over the years to his confederate.

 

The SEC has somewhat uncharacteristically put together an infographic on how the scheme was accomplished.

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