Source:
https://scmp.com/news/world/united-states-canada/article/3033737/goldman-sachs-banker-arrested-over-allegations-us
World/ United States & Canada

Goldman Sachs banker arrested over allegations of US insider trading worth US$2.6 million

  • A spokeswoman confirmed the man was an investment banker but said the bank was unaware of the allegations until Friday
The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the New York Stock Exchange. Photo: Reuters

A Goldman Sachs Group Inc. investment banker was arrested by federal prosecutors over allegations of insider trading, according to court records unsealed on Friday.

Bryan Cohen, a vice-president, leaked nonpublic information for almost three years as part of an international insider trading scheme that led to US$2.6 million in illicit gains, according to a separate complaint from the US Securities and Exchange Commission that did not identify his employer. Some information was tied to pending deals involving Syngenta AG and Buffalo Wild Wings Inc., the documents show.

The DAX index curve sits on display beyond trading desks inside the Frankfurt Stock Exchange. Photo: Bloomberg
The DAX index curve sits on display beyond trading desks inside the Frankfurt Stock Exchange. Photo: Bloomberg

A Goldman spokeswoman confirmed Cohen was an investment banker who worked in the consumer retail division. The bank was unaware of the allegations until Cohen was arrested on Friday. He has since been placed on leave.

“We are cooperating with the authorities on the situation regarding Mr Cohen,” Nicole Sharp, a representative for the firm, said in an emailed statement. “Protecting client confidential information is our highest internal priority and we condemn this alleged behaviour.”

A lawyer for Cohen did not immediately respond to a request for comment.

The accusations are the third insider-trading allegations lodged by US prosecutors against a Goldman banker in the past 18 months.

Cohen, 33, shared the information with a trader who has not been identified, and who subsequently passed it on to George Nikas, who realised the gains, according to the SEC complaint. Nikas, a 54-year-old New York restaurateur who owns the chain GRK Fresh, was also charged by prosecutors. Cohen expected and received cash in exchange for the tips he provided, the filings show.

Cohen has been with Goldman for almost 10 years, starting in the London office before being transferred to New York in 2017. The insider tips were shared between April 2015 and November 2017, according to the SEC complaint.