A US prosecutor has charged a partner at consulting firm McKinsey with securities fraud on suspicion of conducting insider trading ahead of Goldman Sachs. $ 2.2 billion acquisition Online loan provider Green Sky has accused it of using privileged information to make more than $ 450,000 in profits.
A criminal complaint opened Wednesday in federal court in Manhattan “manipulated while McKinsey partner Punito Dixit, 40, in New York, provided consulting services to collect sensitive information about Goldman. We used and used targeted and deceptive equipment and ingenuity. ” Imminent acquisition of Green Sky.
Damian Williams, Federal Attorney for the Southern District of New York, said Dixit “abused access to important private information” about transactions for “breaching obligations to his company and its investment banking clients, and breaching the law.” Said in a statement.
In the complaint, Dikshit purchased an out-of-the-money GreenSky call option (betting that the price of the underlying security would rise), which will expire a few days after the announcement, and the option will expire the morning of the transaction. Claimed to have sold. Announced. The prosecution alleged that he traded a brokerage account in his name and his wife’s name.
The prosecution said the deal took place between July and September of this year and that Dixit’s investment made more than 1,800 percent after the deal was announced. At the time of the alleged misconduct, Dixit was a key partner of the McKinsey team, advising Goldman on a possible acquisition of Green Sky, according to court documents.
Dixit was arrested early Wednesday and charged with two securities frauds, each with up to 20 years in prison.
“We have dismissed Dixit because of a serious breach of our policies and codes of conduct,” McKinsey said in a statement. We will not tolerate any of the horrific behavior described in the complaint and will continue to work with the authorities. ”
According to criminal accusations, consultants visited Google in October to obtain information about the conviction following reports of a suspicious transaction in the GreenSky call option. Rajat GuptaFormer Goldman Sachs board member and former head of McKinsey, convicted of insider trading in 2012.
Dixit also googled “what happens to the options when the company is acquired,” as the court filings allegedly made the deal.
The lawyer representing Dixit did not immediately respond to the request for comment. He will appear in front of US Magistrate Judge Kevin Fox on Wednesday afternoon.
The US Securities and Exchange Commission also filed a parallel civil suit against Dixit, alleging that Dixit traded illegally prior to the acquisition. Both the SEC and the Department of Justice claimed that Dikshit did not pre-liquidate these purchases at his company.
“We are deeply disappointed with the allegations of insider trading and are fully cooperating with the investigation,” Goldman said.
GreenSky’s share price has risen more than 50% since Goldman announced on September 15 that it would buy the company for $ 12.11 per Goldman share.
Additional report by Andrew Edgecliffe-Johnson in New York
McKinsey’s partner accused of insider trading with Goldman Sachs
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