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Lawyer charged over $30m insider trading scheme

Lawyer charged over $30m insider trading scheme

An AmericanM&Alawyerhas been accused of being part of aninsider tradingscheme that has netted $US32 million ($A30.6m).

TheFinancial Timesreports thatNew Jerseyprosecutors have filed charges against Matthew Kluger as one of the key masterminds behind the scheme that was allegedly perpetrated over 17 years.

Kluger,asenior associatewith Wilson Sonsini Goodrich & Rosati for five years, is accused of stealing confidential informationfrom the firm in relation to transactions involving high-profiletechnologycompanies including Oracle, Sun Microsystems and 3Com.

They further allege that Kruger was part of a scheme that invested more than $100 million during his five years at Wilson Sonsini, with profits on somedealsexceeding $10 million.

The lawyer is also accused of trading on confidential information while anemployeeof Cravath, Swaine & Moore and Skadden, Arps, Slate, Meagher & Flom. None of the threelaw firmswhere Kluger has worked are implicated in the alleged fraud.

Investigators believe the illegal trading started in 1994, with Johnson & Johnson'sacquisitionof Neutrogena.Ithas been alleged that Kluger and other members of the scam concealed their activities by using pay phones and throwaway prepaid mobile phones.

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