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Goldman Sachs facing a new insider trading probe

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Emily Flitter
Reuters
April 20, 2012

Federal prosecutors in California are investigating a Goldman Sachs employee for insider trading, according to prosecutors and defense lawyers who attended a hearing in U.S. federal court in New York on Thursday.

The employee is suspected of giving inside information on two public companies to former Galleon Group co-founder Raj Rajaratnam, who was convicted last year in one of the largest insider trading cases in Wall Street history.

The investigation of the Goldman employee was divulged during a hearing involving the insider trading case against former Goldman board member Rajat Gupta.

Gary Naftalis, the lawyer for Gupta, commenting on the newly disclosed investigation, said that Assistant US Attorney Reed Brodsky asked him not divulge details of the matter.

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This article was posted: Friday, April 20, 2012 at 7:09 am





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