While the decision was based on the pleadings and depended on the specific factual allegations in the case, it has far-reaching consequences for traders and companies. This denial affirms the SEC's extension of the misappropriation theory of insider trading beyond targets of acquisitions, to companies "economically linked" to such targets. Securities and Exchange Commission ("SEC") that presented a novel application of the insider trading laws on the basis of "shadow trading." 1 The theory of "shadow trading" has developed around trading by an insider in shares of another company (the "competitor") while in possession of material non-public information ("MNPI") about the insider's own company, where the shares of that competitor are "economically linked" to the insider's company. Goldman Sachs slammed the illegal activity in a statement calling it “egregious and illegal conduct.”Īn attorney for Goel said in a statement, “Sadly, the government rushed to charge Brijesh on the apparent say-so of one person about something that supposedly happened years ago before Brijesh’s current job - without giving Brijesh the chance to speak with them, unfairly tarring his name . . . Brijesh looks forward to demonstrating his innocence.On January 14, 2022, in a closely watched decision, a federal judge in the Northern District of California denied a motion to dismiss a complaint brought by the US. Most of the tips were related to deals Goel was privy to - companies including Lumos Networks, PharMerica Corporation and Calgon Carbon - Niranjan bought call options on the companies, betting shares of the companies would go higher when deals were publicly announced. Goel’s share of the profit - which comes out to less than $150,000 - pales in comparison to what he was making at both Goldman and Apollo. And at Apollo, compensation can swell well above $1 million.
At Goldman, top performing VPs can haul in north of $800,000 on a good year. Indeed, even as Wall Street bonuses hit record highs, the allure of insider trading clearly still holds appeal for financiers. Wall Street bonuses hit all-time high as banker shortage rages attorney for the Southern District of New York said in a press conference on Monday. “We are keenly interested in sending a message that insider trading is still around, we are still around, and we are going to enforce it when we find it,” Damian Williams, U.S. AP The former Goldman Sachs vice president was charged with sharing insider information with his squash partner. attorney for the Southern District of New York addressed reporters Monday. It’s unclear if Niranjan has been placed on leave from Barclays. Goel, who had taken a lucrative job as principal at Apollo Global Management’s structured finance team in 2021, was placed on indefinite leave following the news.
Insider trading code#
The two men even used code language that referenced their squash games - like “Did you book the court?” - to coordinate trades, the filing alleges. Niranjan executed trades on the information about upcoming deals and split the winnings with Goel. Goel - a Goldman banker from 2013 to 2021 - began sharing insider tips with a graduate school friend and Barclays trader Niranjan during squash games in 2017. The Securities and Exchange Commission also filed civil charges against the men. Goldman Sachs banker kept spreadsheet ranking female recruits’ bodies, ex-employee allegesĬruel winter ahead for Wall Street as pandemic debts come dueĪ former Goldman Sachs vice president was charged with insider trading - for allegedly tipping off his squash partner about possible mergers and acquisitions activity - in a scheme that netted the two men a combined $291,735 in profits over the span of multiple years.įederal prosecutors announced charges against the Goldman alum Brijesh Goel, 37, and his squash partner Akshay Niranjan, 33, in the Southern District of New York on Monday. Lawsuit alleges bombshell claims of sex assault, harassment by male bosses at Goldman Goldman Sachs begins layoffs, targeting mid-level bankers: report
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