Alleged insider trader Matt Kluger must be thanking the stars right now that he has parents who can afford to back his $1 million bond with $500,000 in cash.
Thanks to his parents, the alleged prep school kid turned insider trader Matt Kluger who was arrested last week is “free” on house arrest.
He can leave the house only to care for his and his partner’s (surrogate) children or to get mental health counseling (if he leaves the house for any other reason, his electronic monitoring system — an ankle bracelet, we’re guessing — will alert the police) but obviously, it’s much better than the alternative (jail).
You’ll remember that the former M&A lawyer is alleged of insider trading based on tips he learned reading the law firm Wilson Sonsini’s internal system to learn about upcoming deals.
We already knew a lot about Kluger, like how he went to prep school, started his career at a car dealership, became a lawyer, and used his job to find out about upcoming M&A deals and (through a middle man) told Garrett Bauer to trade based on them. And then totally freaked out and might have incriminated himself by saying really stupid things on the (wire-tapped) phone.
But Bloomberg‘s account of the court proceedings have revealed the following new details about Kluger. And they do not paint a picture of someone who would do well in jail. (Not that anyone would.)
- At a previous job, Kluger claimed he was harassed at the firm and then fired because he was gay and partners had said they were “not comfortable” working with him. He filed a sex-discrimination lawsuit against Fried Frank (the law firm Fried Frank Harris Shriver & Jacobson, from which Kluger is also alleged to have stolen information for the purpose of insider trading), which settled in 2004.
- Kluger was adopted by “an extraordinarily caring family” and his biological father died at an early age of a heart condition.
- He had five stents inserted five or six years ago
- He was charged with disorderly conduct in Virginia about a year ago for allegedly destroying property valued at less than $1,000. He paid a $100 fine.
Now out on bail thanks to his adoptive dad (a Pulitzer Prize-winning social historian) and mum, who just posted his pricey bail, Kluger can only leave the house under two conditions, according to Bloomberg:
- It’s for child care purposes
- Or he’s undergoing mental-health treatment
If he leaves the house for any other reason, his electronic monitoring system (an ankle bracelet, we’re guessing) will alert the police.
So Kluger will be relying a lot on his kids, twin 9-year-old boys and a 10-year-old son through a surrogate mother, according to Bloomberg, to get him out of the house. Fun for them! They get to spend time with Dad, who was probably busy being an M&A lawyer for many years.