YORK (Reuters) - Federal prosecutors charged a vice president at
Goldman Sachs Group Inc (GS.N)
on Thursday with insider trading by illegally using non-public
information about several companies that were clients of the
said Woojae “Steve” Jung, a 37-year-old Korean citizen, made more
than $130,000 by trading illegally on confidential information
relating to upcoming transactions and merger negotiations that he
was privy to through his job.
said Jung, who joined Goldman in 2012 and worked in San Francisco,
conducted his trades through a brokerage account in the name of a
friend living in South Korea. The brokerage account was accessed
from internet addresses that were traced to Jung, according to the
U.S. Securities and Exchange Commission.
Jung violated his duty to his company and traded on stolen insider
information, over and over again,” U.S. Attorney Geoffrey Berman
in Manhattan said in a statement.
Steskal, a lawyer for Jung, declined to comment.
Goldman representative said the company had placed Jung on leave.
are aware of the situation regarding Mr. Jung and are cooperating
with legal authorities on the matter,” the person said in a
who was arrested on Thursday morning in San Francisco, was
expected to appear in federal court later in the day, according to
was charged with six counts of securities fraud and one count of
conspiracy. He also faces related civil claims from the SEC.
accused Jung of illegally trading ahead of announcements or
reports of a reorganization by W.R. Grace & Co (GRA.N);
Foresight Energy LP’s (FELP.N)
acquisition by Murray Energy Corp; SanDisk Corp’s acquisition by
Western Digital Corp (WDC.O);
KLA-Tencor Corp’s proposed acquisition by Lam Research Corp (LRCX.O);
Microsemi Corp’s (MSCC.F)
proposed acquisition by Skyworks Solutions Inc (SWKS.O);
and CA Inc’s (CA.O)
proposed acquisition by BMC Software Inc.
SEC said Jung also traded improperly in other companies, including
NXP Semiconductors NV (NXPI.O)
and WebMD Health Corp.
said Jung’s scheme began in early 2015 and continued until the
middle of 2017, when the SEC sought information from Goldman about
which employees had access to confidential information about
that request, according to prosecutors, someone called the
brokerage firm whose account was used to make the illegal trades.
the name of Jung’s friend in Korea, the caller said the account
had been opened using stolen personal information, and that he was
concerned about the transactions in the account, prosecutors said.