The regulator accuses a former Goldman Sachs banker of insider trading.
(Photo: Reuters)
Frankfurt The suspicion weighs heavily: the US authorities have accused a former Goldman Sachs banker of insider trading. The 37-year-old is said to have systematically shared confidential information about upcoming deals with his squash partner and thus made illegal profits of almost $ 300,000 – according to the allegations of the US Securities and Exchange Commission SEC. Earlier this week, the Manhattan Attorney’s Office filed charges against the ex-Goldman banker, while the SEC has filed civil suits in the same case.
According to the information from the securities regulator, the two suspects were school friends and regularly played squash together. These games are said to have both used to exchange inside information.
The accused Goldman banker worked for the bank from 2013 to 2021, the allegations relate to the years 2017 and 2018. The prosecutors accuse the suspect of insider trading and obstruction of justice because he is said to have destroyed evidence.
Specifically, the suspect is said to have passed on information from internal meetings of the investment bank about upcoming takeovers. His squash partner, who worked as a foreign exchange dealer, is said to have used this information to bet on price gains of the takeover targets with call options. According to the securities regulator, the companies affected include Lumos Networks, Pharmerica and Calgon Carbon.
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In a statement, Goldman Sachs condemned “conduct that violates our standards and business principles.” The bank emphasizes that it is fully cooperating with the authorities.
After his time at Goldman, the suspect moved to the Apollo holding company. She suspended the ex-Goldman banker indefinitely after prosecutors’ allegations came to light, according to a statement.
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