Insider conspirator friend of defendants-NY Times

CHICAGO, April 9 (Reuters) – The unidentified
co-conspirator who funneled tips and cash between a lawyer and
trader accused of running a 17-year scheme to trade on
corporate merger secrets was a former colleague of both
defendants, the New York Times reported.

It identified the co-conspirator, who was not charged in
one of the largest U.S. insider trading cases on record, as
Kenneth T. Robinson, a former trader and mortgage broker on
Long Island.

Robinson could not be reached for comment.

Federal prosecutors this week accused Matthew H. Kluger and
Garrett D. Bauer of reaping more than $32.2 million from trades
on tips about upcoming mergers and acquisitions that Kluger
learned as a lawyer at Wilson Sonsini Goodrich & Rosati PC, the
pre-eminent firm representing Silicon Valley technology

The New York Times report on Friday said the scheme
unraveled after Robinson made $200,0000 from buying shares of
3Com Corporation, which was soon to be acquired by
Hewlett-Packard. The profit alerted the SEC to Robinson, the
report said, citing a person with knowledge of the
investigation who spoke anonymously because its details are not

Robinson began taping conversations with Kluger and Bauer
after federal authorities raided his house in early March,
according to the New York Times.

The insider trading complaint relies on many recorded
telephone calls. In one call, on March 28, Bauer was said to
have discussed how to dispose of $175,000 of cash with his
fingerprints that he had given the co-conspirator.

More than $109 million was invested in the purported
scheme, prosecutors said. Kluger is a resident of Oakton,
Virginia, while Bauer lives in New York.
(Reporting by Mark Weinraub; editing by Chris Wilson)

Insider conspirator friend of defendants-NY Times