Before his sentencing, Bauer hit the lecture circuit with a talk sometimes titled "Confessions of an Inside Trader."
He occasionally discussed the recorded conversations with Robinson, including one in which he discussed laundering the $175,000 in cash -- literally. He laundered it in a washing machine, to remove fingerprints.
Bauer gave the talk 147 times at universities all over the U.S., including the NYU law school Kluger had attended.
"I feel remorse," he told the NYU students. "That's why I'm here."
In a bid for leniency, Bauer's lawyers presented 200 letters on his behalf at his sentencing.
"No 'Scared Straight' program could hope to be as effective as the one Garrett provided my two classes," wrote Mark Brennan, an adjunct professor at NYU's business school.
Sentenced
Kluger and Bauer were sentenced by U.S. District Judge Katharine Hayden on June 4. Assistant U.S. Attorney Judith Germano, who oversaw the prosecution, argued that Kluger was liable for the $37 million in illicit profit as the "mastermind." Under federal sentencing guidelines, she said, he deserved 11 to 14 years in prison.
At the hearing, Kluger's attorney Alan Zegas argued that he shouldn't be judged on the basis of $37 million in profits because he saw so little of it.
"I was not the mastermind," Kluger said later in an interview. "I'm not saying I was a good guy. I was definitely a very bad guy. These two guys were definitely manipulating me to keep me alive as a source."
Judge Hayden was not persuaded. She said Kluger engaged in "thuggish" behavior that helped undermine investor confidence in the market.
Simplicity
The scheme succeeded for so long, she said, because of its simplicity, the discipline of its limited number of people and its "essential amoral nature, where anything and everything involving trust and honor was thrown out of the window because of that blissful access to information that Mr. Kluger enjoyed."