A former Goldman Sachs banker was convicted of insider trading by a Latest York jury on Wednesday, after prosecutors said he passed recommendations on potential mergers to a friend.
On the trial that began in Manhattan on June 12, prosecutors said Brijesh Goel, a former Goldman Sachs vp, tipped his friend Akshay Niranjan to deals the bank was considering funding in 2017 and 2018.
He was convicted on 4 counts of securities fraud, conspiracy and obstruction of justice.
Goel, flanked by his lawyers, looked down as the decision was read.
Prosecutors said Goel gleaned the knowledge on six firms targeted for deals — including Spirit Airlines and drugmaker Patheon — from internal Goldman emails, after which tipped Niranjan over games of squash.
Goel took the stand in his own defense through the trial and denied that he shared confidential information concerning the transactions.
His attorneys said Niranjan had framed Goel to cover his own trades.
Brijesh Goel was a former Goldman Sachs vp. He was convicted on 4 counts of securities fraud, conspiracy and obstruction of justice.Reuters
Niranjan, who cooperated with prosecutors as a part of a non-prosecution agreement, testified on the trial that he traded on information he received from Goel and agreed to separate around $280,000 in profits.
Prosecutors agreed to not charge him in exchange for his cooperation within the case, which included secretly recording conversations where Goel urged him to delete text messages.
The case was one in every of several US Attorney Damien Williams announced last summer as a part of an insider trading crackdown.
Goel is scheduled to be sentenced on Oct. 19. His attorneys declined to comment on the decision.
The case was one in every of several US Attorney Damien Williams announced last summer as a part of an insider trading crackdown.AFP via Getty Images
Any sentence could be imposed by the judge based on several aspects.
The fraud and obstruction charges carry maximum sentences of 20 years. The typical sentence in federal fraud, theft and embezzlement cases within the US last yr was 22 months in prison.
