Q: Is it a good idea to use client information to make yourself rich? A: No.

/ 07.Apr, 2011
Lawyers receive lots of information from their clients.  Some lawyers receive more valuable information in client communications than others.  A simple rule of malpractice avoidance is to not use this information for personal profit (although, as always, there are many gray areas).  Lawyer Matthew Kluger, formerly of Wilson Sonsini Goodrich & Rosati has been indicted as part of a scheme which allegedly brought in $32 million in profits by trading on confidential mergers and acquisitions information received from his clients.  Not only is this a clear ethical violation of R.P.C. 1.6, but it is highly illegal.  Mr. Kluger’s use of pre-paid cell phones bought with cash for communicating with his co-conspirators suggested to the FBI that he understood the activity was illegal.  The entertaining FBI press release can be found at: J.T. Byrne, Esquire