Foreign exchange market

Goldman Sachs vice-president, South Korean citizen Woojae Jung ‘made more than US$130,000 in insider trading’

Prosecutors say Woojae Jung used confidential information about upcoming transactions he learned through his work for the bank to make illegal trades

PUBLISHED : Friday, 01 June, 2018, 1:41am
UPDATED : Friday, 01 June, 2018, 7:04am

Federal prosecutors charged a vice-president at Goldman Sachs Group Inc on Thursday with making more than US$130,000 through illegal trades using inside information about companies advised by the investment bank.

Prosecutors said Woojae Jung, a 37-year old South Korean citizen, used confidential information about upcoming transactions he learned through his work for the bank, to trade-in companies such as W.R. Grace & Co and Foresight Energy LP, according to a criminal complaint filed in Manhattan federal court.

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Jung is charged with conspiracy and securities fraud. He also faces related civil charges from the US Securities and Exchange Commission.

A Goldman Sachs spokesperson says they “are aware of the situation regarding Woojae Jung and are cooperating with legal authorities on the matter”. A lawyer for Jung could not immediately be identified.

Prosecutors said Jung engaged in those trades through a brokerage account in the name of a friend living in South Korea.

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The insider trading continued until 2017, when the US Securities and Exchange Commission requested information from Goldman about which employees had access to confidential information about certain transactions, they said.

Following that request, prosecutors said, someone called the brokerage firm whose account was used to make those illegal trades.

Using the name of Jung’s friend in Korea, the caller said that the account had been opened using stolen personal information, and he was concerned about the transactions in the account.