Federal prosecutors filed charges on Wednesday in what officials are calling one of the longest-running insider-trading schemes in U.S. history, The Wall Street Journal reports.
The prosecutors allege that Matthew Kluger, a lawyer, spent 17 years funneling insider information to trader Garrett Bauer using a go-between in an arrangement that allegedly netted $32 million.
Kluger and Bauer were arrested Wednesday after their intermediary agreed to record conversations for law-enforcement officials, according to prosecutors. The Journal writes that the case "highlights the aggressiveness of law enforcement authorities who are increasingly using secretly recorded phone conversations and cooperating witnesses to build cases" and cites as one example the ongoing, high-profile insider trading case against Galleon Group hedge fund founder Raj Rajaratnam.
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