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HomeYour businessBroker-DealersEx-Goldman Banker Tipped Squash Buddy On Deals, U.S. Alleges

Ex-Goldman Banker Tipped Squash Buddy On Deals, U.S. Alleges

A former Goldman Sachs Group Inc. banker was accused of passing insider trading information to a squash buddy, part of a group of nine people charged Monday by federal prosecutors in New York.

Brijesh Goel, 37, worked at the bank in New York from 2013 until about 2021, eventually reaching the position of vice president. Through his role, Goel received confidential emails from the bank’s Firmwide Capital Committee about potential mergers, according to court documents. Prosecutors allege he passed tips to another person, who traded on the information and split profits with Goel.

The government didn’t identify Goel’s employer, but people familiar with the matter said he was at Goldman. The trading included several takeover deals, including T-Mobile and Sprint Corp., Spirit Airlines Inc. and Frontier Group Holdings.

In one instance, prosecutors said that when Goel received an email about a potential takeover target for EQT Partners Inc., he texted his friend, “Let’s play Squash after work,” and that evening suggested that his friend buy call options in the target company.

The next day, he asked his friend via text, “Did you book the court?” Prosecutors allege this was his “coded way of asking” whether the friend had purchased call options.

In a separate court filing, the US Securities and Exchange Commission said Goel passed tips to a foreign exchange trader and longtime friend named Akshay Niranjan, 33, with whom he often played squash. According to the SEC complaint, Goel and Niranjan met as graduate business students in California and moved to New York together in 2013. In addition to playing squash together, they frequently took overseas trips together, and, at times, lived in the same apartment building.

Goel is among nine people charged, including former Republican member of Congress Stephen Buyer, who represented Indiana from 1993 to 2011. Buyer is accused of taking confidential information from two of his consulting business’s clients and trading on it.

Prosecutors allege he traded on it first in 2018 while working for T-Mobile US, when he learned that it planned to acquire Sprint, and then the next year when he learned that his client Guidehouse LLP was going to purchase Navigant Consulting. Prosecutors said he earned profits of at least $349,000.

Prosecutors said one of the accounts that Buyer used to trade was shared jointly with a relative who lost hundreds of thousands of dollars on an investment Buyer had led them to make that he promised to pay back. Another was in the name of a female friend that he previously had a romantic relationship with, they claim.

He also is accused of sending himself reports on the companies and notes to himself to make it seem like he was researching the stocks and of lying to investigators probing the trades.

Prosecutors also named Seth Markin, alleging he was an FBI agent trainee when he made more than $1.4 million in 2021 after he “stole” inside information from his then girlfriend, who at the time was an associate “at a major law firm in Washington DC.”

Markin is accused of secretly looking through his girlfriend’s confidential work documents without her permission and finding out that Merck & Co. was going to acquire Pandion Therapeutics, a biotech company, for about three times the value of Pandion’s share price.

–With assistance from Patricia Hurtado.

This article was provided by Bloomberg News.

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