A mortgage broker who secretly recorded two friends who prosecutors say tried to cover up one of the biggest US insider trading cases on record pleaded guilty to involvement in the 17-year scheme. Kenneth Robinson admitted to being a middleman who supplied information to accused trader Garrett D. Bauer about pending mergers.
He said he got the tips from corporate lawyer Matthew H. Kluger, who is accused of stealing the details from law firms where he worked. Kluger and Bauer were arrested last week for their roles in the estimated $32.2 million scheme. Bauer made most of the illegal profit, while Robinson made about $875,000 and Kluger made $500,000, investigators said. Kluger and Bauer have not yet entered pleas. Robinson, 45, pleaded guilty to two counts of securities fraud and one count of conspiracy before US District Judge Katharine Hayden at a hearing Monday in federal court in Newark, New Jersey.
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