Last Wednesday, Garrett Bauer and Matthew Kluger, a trader and lawyer, were charged with running an insider trading scam that spanned over 17 years. In transcripts of conversations record by the government (on topics varying from dumping evidence in McDonald's, debating burning dirty money versus washing it, and arguing how far a walk it's worth to get rid of a cell phone), one other individual appears, identified only as CC-1. Today CC-1 took off his mask.
His name is Kenneth T. Robinson and all those times he ratted his accomplices out to the Fed, making those calls in which he commiserated not being able to sleep at night sting real bad. Robinson pleaded guilty to securities fraud earlier today and while he was there, the judge asked a few questions, some of which Robs wasn't particularly helpful in answering.
Mr. Robinson, 45, also disclosed for the first time that at least one other person was involved in the alleged scheme. Mr. Robinson said in court that “more than 10 years ago” he would pass insider tips from Mr. Kluger to another unnamed person. The scheme involved some 15 mergers, Mr. Robinson said, though he could not recall an exact number.
“It was very hard to remember every one,” he told the judge.