Risk Management

Former Goldman banker, ex-FBI trainee charged with insider trading

July 25, 2022 Reprints

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(Reuters) - A former Goldman Sachs banker, a former FBI agent trainee, a technology executive and others were charged on Monday with insider trading in separate schemes that together generated millions of dollars in profits, U.S. prosecutors said.

"Each of the defendants charged today corrupted the integrity of the markets," Damian Williams, the top federal prosecutor in Manhattan and one of Wall Street's main cops, told reporters.

The U.S. Securities and Exchange Commission filed related civil charges over the various trading schemes.

Among those charged were former Goldman vice president Brijesh Goel, who faces six counts of securities fraud and obstruction of justice for allegedly giving a co-conspirator non-public information about potential mergers and acquisitions beginning in February 2017.

The co-conspirator, identified by the SEC as Goel's friend Akshay Niranjan, used the tips to trade in securities of some of the companies targeted for deals - including Spirit Airlines Inc. and pharmaceutical manufacturer Patheon - and split $280,000 in profits with Goel, prosecutors said.

Prosecutors also charged Seth Markin, the former FBI trainee, with insider trading for allegedly buying shares of Pandion Therapeutics Inc. before a February 2021 tender offer for the company by Merck & Co.

Markin allegedly learned of the deal by reviewing documents belonging to his then-romantic partner, who worked at a law firm representing Merck.

In a third case, prosecutors said Amit Bhardwaj, a former executive at laser specialist Lumentum Holdings Inc., last fall bought shares in Coherent Inc. after learning Lumentum planned to acquire the company.

Lawyers for Goel, Markin and Bhardwaj did not immediately respond to requests for comment.

Prosecutors separately announced charges against former U.S. Rep. Stephen Buyer for insider trading ahead of a major telecoms tie-up.