A California-based Goldman Sachs investment banker has been arrested and charged by the Manhattan U.S. Attorney's Office of insider trading. The banker allegedly used an account belonging to a college friend to engage in hundreds of illegal trades in the tech, health, and energy sectors. The trading netted the banker $140,000.
The former Goldman Sachs banker, Woojae "Steve" Jung, 37, faces six counts of securities fraud and one count of conspiracy. Insider trading is an illegal practice of using non-public information to purchase or sell securities.
Jung allegedly used an account set up in a friend’s name to engage in serial illegal trading in shares including W.R. Grace & Co., Foresight Energy, and SanDisk Corp. According to the complaint, all three companies were either involved in merger discussions with Goldman Sachs clients or were existing Goldman Sachs clients.
The criminal case did not name Goldman Sachs as a potential defendant. According to reports, Goldman Sachs is cooperating with authorities on the case.
Goldman Sachs Banker Also Facing SEC Lawsuit
Jung also faces fraud charges in an SEC lawsuit. The SEC lawsuit alleges that Jung made illegal trades in 12 different companies including CA Inc., FEI Co., Fairchild Semiconductor International Inc., Foresight, Gigamon Inc., KLA-Tencor Corp., Microsemi Corp., Nimble Storage Inc., NXP Semiconductors NV, SanDisk, WebMD Health Corp, and W.R. Grace.
Jung’s friend, Sungrok Hwang of South Korea, has been named as a relief defendant in the SEC lawsuit. Hwang and Jung allegedly were classmates at Seoul National University.
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