A New York jury recently convicted a former Goldman Sachs (GS.N) banker of insider trading after prosecutors claimed he shared information about prospective mergers with a friend.Seriously? What was he thinking?
Prosecutors alleged that former Goldman Sachs vice president Brijesh Goel informed his friend Akshay Niranjan about deals the bank was contemplating funding in 2017 and 2018. Four counts of securities fraud, conspiracy, and obstruction of justice led to his conviction.
As the verdict was read, Goel and his attorneys glanced down.
Every Choice has a Consequence!
Prosecutors claim that Goel gleaned information on six companies targeted for transactions from internal Goldman emails, including Spirit Airlines (SAVE.N) and drugmaker Patheon, and then tipped Niranjan over games of squash.
During the trial, Goel took the stand in his defense and disputed sharing confidential information about the transactions. His attorneys asserted that Niranjan framed Goel to protect his transactions.
It’s always the friends…just ask Scott London!
Niranjan, who cooperated with prosecutors as part of a non-prosecution agreement, testified at trial that he traded on information obtained from Goel and promised to split approximately $280,000 in profits.
Prosecutors agreed to drop all charges against him in exchange for cooperation, which included covertly recording conversations in which Goel urged him to delete text messages.
Sounds like TV drama, but it’s real life!
Goel’s sentencing is scheduled for October 19. His legal representatives refused to comment on the verdict.
The maximum penalties for the charges of insider trading, fraud and obstruction are 20 years. In the United States, the average sentence for federal fraud, larceny, and embezzlement cases last year was 22 months in prison.
Choices have consequences, and while he’ll be at a minimum security prison – prison is no fun. I know from personal experience.
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