twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

P R E S S   R E L E A S E


June 5, 2012

Middleman Sentenced To Prison For Role In $37 Million Insider Trading Scheme

NEWARK, N.J. Kenneth Robinson a middleman who passed information stolen from preeminent law firms to facilitate a scheme that netted at least $37 million in illicit profits was sentenced today to 27 months in prison for his role in a long-term insider trading conspiracy with stock trader Garrett Bauer and attorney Matthew Kluger, U.S. Attorney Paul J. Fishman announced.

Kenneth T. Robinson, 46, of Long Beach, N.Y., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an Information charging him with one count of conspiracy to commit securities fraud and two counts of securities fraud.

According to documents filed in this case and statements made in Newark federal court:

Robinson, a mortgage broker, engaged in an insider trading scheme with Bauer and Kluger that began in 1994. During the last five years of the scheme, the conspirators invested more than $109 million and made more than approximately $37 million in illicit profits.

Over time, Kluger worked at four of the nation's premier mergers and acquisitions law firms. From 1994 to 1997, he worked first as a summer associate and later as a corporate associate at Cravath Swaine & Moore in New York. From 1998 to 2001, he worked at Skadden, Arps, Slate, Meagher & Flom as an associate in its corporate department. From 2001 to 2002, he worked at Fried, Frank, Harris, Shriver & Jacobson LLP in New York. From December 5, 2005 to March 11, 2011, Kluger worked at Wilson Sonsini Goodrich & Rosati ("Wilson Sonsini"), as a senior associate in the Mergers & Acquisitions department of the firm's Washington office.

While at the law firms, Kluger regularly stole material, nonpublic information regarding anticipated corporate mergers and acquisitions on which his firms were working, and disclosed that information to Robinson. Robinson admitted that once Kluger provided him the inside information, he usually passed it to Bauer, a professional trader. Bauer then purchased shares for himself, Kluger, and Robinson in Bauer's trading accounts. Bauer quickly sold the shares once the relevant deal was publicly announced and the stock price rose. Bauer gave Robinson and Kluger their shares of the illicit profits in cash often tens or hundreds of thousands of dollars that Bauer withdrew in multiple transactions from ATMs. Between 1994 and 2011, the conspirators traded ahead of at least 30 different corporate transactions.

Robinson admitted that he personally made the trades on at least two transactions: the acquisition of 3Com Corp. by Hewlett-Packard, announced November 11, 2009; and the acquisition of McAfee Inc. by Intel Corp., announced August 19, 2010.

Robinson also admitted that after Kluger joined Wilson Sonsini, the three conspirators generally only spoke to each other about proposed transactions on payphones or prepaid cellular phones that they referred to as "throwaway phones" and purchased with cash. They often got a new phone for each of their insider trading deals.

In addition to the prison term, Judge Hayden sentenced Robinson to three years of supervised release. Kluger and Bauer were sentenced yesterday, June 4, 2012, to 12 and 9 years in prison, respectively.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, and special agents of the IRS, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, for the investigation leading to today's sentencings. He also thanked the U.S. Securities and Exchange Commission's Market Abuse Unit and Philadelphia Regional Office, under the direction of Daniel M. Hawke, for their role in the investigation.

The government is represented by Assistant U.S. Attorneys Matthew E. Beck of the U.S. Attorney's Office Economic Crimes Unit; Judith H. Germano, Chief of the Economic Crimes Unit; and Lakshmi Srinivasan Herman of the Office's Asset Forfeiture Unit in Newark.

This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Source: United States Attorney's Office for the District of New Jersey

mortgage fraud case stories

mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders