Insider Tapes: Destroying Phones and Burning Money
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The criminal complaint against Matthew Kluger, a lawyer, and Garrett Bauer, a trader, accusing the two of insider trading includes excerpts of secretly recorded conversations between the two men and an unidentified co-conspirator. Here are a few highlights:
On March 17, the complaint says that the co-conspirator used a prepaid cellphone to call Mr. Kluger. The two discuss destroying a computer and an iPhone:
Kluger: By the way, I got rid of my computer. I got rid of my iPhone where I had looked up some stock quotes. Those are gone. I mean history. Gone.
CC-1: Okay.
Kluger: Umm, and obviously the phone that you and I talked on, that’s gone too.
…
Kluger: I would really, I would really feel better if you got rid of this phone and I wish here’s, here’s what I’d like to do. I will get one of those things [a throwaway phone] tomorrow.
CC-1: Okay.
Kluger: I would like you to get rid of that one [CC-1 's throwaway phone].
CC-1: Okay.
Kluger: I want you to call me back on at home, here, with quarters.
CC-1: Okay.
Kluger: I will then give you the phone number of that other thing.
CC-1: Okay.
Kluger: And then either you can buy another one [a new throwaway phone] that’s only calling – I just, I hate the idea of you being in possession of something that has my phone number.
The next day, according to the complaint, Mr. Bauer instructed the co-conspirator to burn $175,000 in cash.
CC-1: Hey, let me ask you. When you take the money out of the cash machines, right, you don’t ever count the money. You just kind of hold it and put it in the
envelopes right?
Bauer: Well, recently I have — well you know in this last one I had to count it because I had so many problems withdrawing money ….
CC-1: Oh, because I can then change the envelopes.
Bauer: You didn’t change it?
CC-1: I don’t change ‘em, I just leave them right in the envelope. But I mean normally, I would just leave everything right in the envelopes and that’s it. And I don’t exactly have access to it, it’s hidden so well at my cousin’s house.
Bauer: I’d almost – you know what, you know what, if you feel better burn the money and I’ll give it back to you.
CC-1: Burn it?
Bauer: I would burn it in a fire. [voices overlap] Like [name of CC-I], if there is any chance of us getting caught on that. [voices overlap]
CC-1: You know something, that – that’s foolish. You know what – this cousin of mine he is, he is, he is not a, the straightest shooter. He’s a cool guy, I mean he’s a cool guy. So-
Bauer: I know, but I am worried from him. What about his point of view? Does he know that my fingerprints are on that money?
CC-1: Well he, you know, he’s not going to say anything. They’re not going to ever contact him.
Bauer: No, he doesn’t have to say anything. But, like, if they ever come and the do some kind of raid like they did to you. [voices overlap]
CC-1: There is no way they’re going to come – I am not going to even. They don’t even know. They will never know who he is and where he is. It’s just never going to happen. I have numerous cousins and -
Bauer: No, I am not talking about him, I am talking about your other friend.
CC-1: Oh, oh, oh, no, he doesn’t know where the money is either. You mean M [referring to Mr. Kluger]?
Bauer: Your friend in Washington or wherever he is.
CC-1: Right, right right. No, he doesn’t know where it is. No, no, no, I don’t tell him.
Bauer: No, no, his – the money that he has, your friend.
CC-1: Oh – no, he doesn’t have anymore.
Bauer: Oh, he spent it all?
CC-1: Yeah, he spent it all.
Bauer: [Laughs] Oh my god. Okay, alright.
CC-1: He was as dumb as me. He was dumb as me. He deposited it in the bank
Bauer: He deposited it?
CC-1: Yeah, I told you.
Bauer: Oh my god.
On a March 28 call, Mr. Bauer was still concerned about fingerprints on the money.
Bauer: We have to get all the fingerprints off that money.
CC-1: Yeah.
Bauer: Like you wearing gloves or something and wiping every bill down or something. But it has to be done. Or as, like, you giving it to me and me wiping every bill down or something.
CC-1: You know something. Somebody did say: “Why don’t you just run it through a
dish-, a washing machine?”
Bauer: Well, I, I don’t know. I mean, I’ve seen that in the movies but I don’t know – who said that? Someone said that to you?
CC-1: Yeah [laughing], my cousin did. [voices overlap] He goes, “run it through a
washing machine.” And I’m like, “you can do that?” and he goes “yeah.” And I go, “alright.”
On March 17, the complaint says that the co-conspirator used a prepaid cellphone to call Mr. Kluger. The two discuss destroying a computer and an iPhone:
Kluger: By the way, I got rid of my computer. I got rid of my iPhone where I had looked up some stock quotes. Those are gone. I mean history. Gone.
CC-1: Okay.
Kluger: Umm, and obviously the phone that you and I talked on, that’s gone too.
…
Kluger: I would really, I would really feel better if you got rid of this phone and I wish here’s, here’s what I’d like to do. I will get one of those things [a throwaway phone] tomorrow.
CC-1: Okay.
Kluger: I would like you to get rid of that one [CC-1 's throwaway phone].
CC-1: Okay.
Kluger: I want you to call me back on at home, here, with quarters.
CC-1: Okay.
Kluger: I will then give you the phone number of that other thing.
CC-1: Okay.
Kluger: And then either you can buy another one [a new throwaway phone] that’s only calling – I just, I hate the idea of you being in possession of something that has my phone number.
The next day, according to the complaint, Mr. Bauer instructed the co-conspirator to burn $175,000 in cash.
CC-1: Hey, let me ask you. When you take the money out of the cash machines, right, you don’t ever count the money. You just kind of hold it and put it in the
envelopes right?
Bauer: Well, recently I have — well you know in this last one I had to count it because I had so many problems withdrawing money ….
CC-1: Oh, because I can then change the envelopes.
Bauer: You didn’t change it?
CC-1: I don’t change ‘em, I just leave them right in the envelope. But I mean normally, I would just leave everything right in the envelopes and that’s it. And I don’t exactly have access to it, it’s hidden so well at my cousin’s house.
Bauer: I’d almost – you know what, you know what, if you feel better burn the money and I’ll give it back to you.
CC-1: Burn it?
Bauer: I would burn it in a fire. [voices overlap] Like [name of CC-I], if there is any chance of us getting caught on that. [voices overlap]
CC-1: You know something, that – that’s foolish. You know what – this cousin of mine he is, he is, he is not a, the straightest shooter. He’s a cool guy, I mean he’s a cool guy. So-
Bauer: I know, but I am worried from him. What about his point of view? Does he know that my fingerprints are on that money?
CC-1: Well he, you know, he’s not going to say anything. They’re not going to ever contact him.
Bauer: No, he doesn’t have to say anything. But, like, if they ever come and the do some kind of raid like they did to you. [voices overlap]
CC-1: There is no way they’re going to come – I am not going to even. They don’t even know. They will never know who he is and where he is. It’s just never going to happen. I have numerous cousins and -
Bauer: No, I am not talking about him, I am talking about your other friend.
CC-1: Oh, oh, oh, no, he doesn’t know where the money is either. You mean M [referring to Mr. Kluger]?
Bauer: Your friend in Washington or wherever he is.
CC-1: Right, right right. No, he doesn’t know where it is. No, no, no, I don’t tell him.
Bauer: No, no, his – the money that he has, your friend.
CC-1: Oh – no, he doesn’t have anymore.
Bauer: Oh, he spent it all?
CC-1: Yeah, he spent it all.
Bauer: [Laughs] Oh my god. Okay, alright.
CC-1: He was as dumb as me. He was dumb as me. He deposited it in the bank
Bauer: He deposited it?
CC-1: Yeah, I told you.
Bauer: Oh my god.
On a March 28 call, Mr. Bauer was still concerned about fingerprints on the money.
Bauer: We have to get all the fingerprints off that money.
CC-1: Yeah.
Bauer: Like you wearing gloves or something and wiping every bill down or something. But it has to be done. Or as, like, you giving it to me and me wiping every bill down or something.
CC-1: You know something. Somebody did say: “Why don’t you just run it through a
dish-, a washing machine?”
Bauer: Well, I, I don’t know. I mean, I’ve seen that in the movies but I don’t know – who said that? Someone said that to you?
CC-1: Yeah [laughing], my cousin did. [voices overlap] He goes, “run it through a
washing machine.” And I’m like, “you can do that?” and he goes “yeah.” And I go, “alright.”
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