Page 2 of 2
Kluger last month, after learning about the investigation, destroyed a computer, an iPhone used to conduct searches, and a pre-paid cell phone, and then instructed "Middleman" to destroy a pre-paid cell phone used to call Kluger at home, the SEC alleged.
At one point, when Bauer realized that fingerprints on $175,000 in cash he gave to "Middleman" might contain his fingerprints, told "Middleman" to burn that cash.
"I'd almost - you know what, you know what, if you feel better burn the money and I'll give it back to you. Burn it? I would burn it in a fire," Bauer told "Middleman". according to the SEC's transcript.
The SEC also alleged that Kluger, "Middleman," and Bauer also passed acted on inside information provided by Kluger to conduct unlawful trades on Johnson & Johnson's 1994 acquisition of Neutrogena, IBM's 1995 acquisition of Lotus Development, IBM's 1996 acquisition of Tivoli Systems, Unilever's 1996 acquisition Helene Curtis, and America Online's 1999 acquisition of MovieFone.
The SEC is asking the judge in the case to force Kluger and Bauer to give up their proceeds plus interest from the trades in question, pay a penalty of up to three times those proceeds, and be permanently barred from violating SEC regulations related to stock trades.
<< Previous
|
1
|
2
