NEWARK, N.J./NEW YORK (Reuters) - a mortgage broker who secretly recorded two friends charged with attempting to conceal the biggest Insider U.S. for cases on record pleaded guilty to involvement in the 17-year regime.
Kenneth Robinson, 45, admitted to be an intermediary who provided information to the trader Garrett d. Bauer on pending mergers, involving mainly computer companies such as Hewlett-Packard Co and Intel Corp.
He said that he has received advice from corporate Matthew h. Kluger, who is accused of stealing the details of the firms where he worked, including Wilson Sonsini Goodrich & Rosati PC, known for the representation of Silicon Valley companies.
Kluger and Bauer, were arrested for their roles in what prosecutors Monday called a pattern of $ 34 million, $ 32.2 million that they had found last week, last week. These defendants have not yet pleaded.
Bauer made most of the illegal profits, while approximately $875,000 fact Robinson and Kluger is $500,000, said investigators.
Robinson is anonymous "accomplice" cited in the criminal complaint against Bauer and Kluger, who were respectively 43 and 50 at the time of their arrest.
Prosecutors have accused the two men to harvest the profits of illegal trades based on advice about 11 pending out mergers and investments than Kluger learned while working at Wilson Sonsini, which he left last month.
The scheme was discovered after the Robinson house in Long Beach, New York, was raided last month. Robinson has subsequently investigators left secretly record his conversations with Bauer and Kluger, court documents show.
In these appeals, men discussed destroying relevant evidence, including the Elimination of the phones and computer data "disposable" and if money could be cleaned in a washing to her machine get rid of fingerprints, according to court documents.
ROBINSON ADMITS TO FRAUD, CONSPIRACY
Robinson admitted to personally trades in 2009 and 2010 on two transactions based on the advice of Kluger - resumption of Hewlett-Packard of 3Com Corp. and purchase of Intel of McAfee Inc. - for a profit of approximately $693,000.
He also admitted to tipping Bauer of redemption of the chip manufacturer British CSR Plc of Zoran Corp., which was announced in February and accepted consideration of $182,000 illegal trades in the company of Imaging. Robinson will lose this sum.
During his hearing, Robinson said that he sent to also information to someone else that Bauer there are more than 10 years.
Robinson pleaded guilty to two counts of securities fraud and one count of conspiracy before U.S. District Judge Katharine Hayden at a hearing Monday before the Court in Newark, New Jersey. It was released on bail of $ 2 million.
The defendant liable of 70 to 87 months in prison under his plea agreement when he is sentenced July 26.
Robinson shot himself, Monday morning, his lawyer Francis Murray said.
An afternoon hearing before the United States magistrate judge Madeline Cox Arleo, Bauer was released on bail of 4 million to the custody of his mother. It will be submitted to home confinement with electronic monitoring.
The two defendants were handcuffed to their audiences, and Bauer was also chained to the ankle.
CASE MAY GROW.
Prosecutors said that Kluger began merger advice to flee, since 1994, including when he worked as a partner in law firm Cravath, Swaine & Moore LLP and Skadden, Arps, Slate, Meagher & Flom LLP.
These previous leaks are not now part of the criminal case.
Robinson said that he also gets advice from Kluger when counsel has worked in a law firm fourth counsel, Fried, Frank, Harris, Shriver & Jacobson LLP, who was not named in court documents.
Fried Frank said he cooperated with the investigation and policies to protect the confidential information of clients.
Rachel Martin, a lawyer for Kluger, refused to comment on.
Scott Splittgerber, a lawyer for Bauer, declined to comment after hearing of his client.
Prosecutors have indicated that the cooperation of Robinson can help broaden their cause against Bauer, who lives in New York and Kluger, a resident of Oakton, Virginia.
"In many criminal cases, the testimony of a person in a system is instrumental in our strategy of investigation and prosecution," New Jersey U.S. Attorney Paul Fishman said after hearing of Robinson.
The case comes also from prosecutors seeking a large number of cases, including against Raj Rajaratnam, the founder of Fund hedge Galleon group Insider high - profile.
Rajaratnam pleaded not guilty. It is held in New York on charges of securities fraud and conspiracy.
The case is U.S. v. Robinson, U.S. District Court, District of New Jersey, no. 11-cr-00223.
(Editing by Tim Dobbyn, Steve Orlofsky and Gerald e. McCormick)
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