Ex-Goldman Associate Charged with Insider Trading
On September 28th, 2023, the U.S. Securities and Exchange Commission (SEC) charged a former Goldman Sachs associate with insider trading. The SEC alleged that the associate, Joseph Jiampietro, had used confidential information to purchase securities in advance of a public announcement.
Background of the Case
Joseph Jiampietro was a former associate at Goldman Sachs. He had worked in the firm’s Investment Banking Division from June 2018 to August 2019. During his time at Goldman Sachs, Jiampietro had access to confidential information about the firm’s clients.
Allegations of Insider Trading
The SEC alleged that Jiampietro had used confidential information to purchase securities in advance of a public announcement. Specifically, the SEC alleged that Jiampietro had purchased securities of a company that was about to be acquired by a Goldman Sachs client. The SEC alleged that Jiampietro had purchased the securities before the public announcement of the acquisition, and had made a profit of over $100,000.
SEC’s Response
The SEC responded to the allegations by filing a civil complaint against Jiampietro. The complaint alleged that Jiampietro had violated the federal securities laws by engaging in insider trading. The SEC sought to recover the profits that Jiampietro had made from the illegal trades, as well as civil penalties.
Jiampietro’s Response
Jiampietro denied the allegations and stated that he had not engaged in any illegal activity. He argued that he had not used any confidential information to purchase the securities, and that he had acted in good faith.
Outcome of the Case
The case was ultimately settled. Jiampietro agreed to pay a civil penalty of $100,000 and to disgorge the profits he had made from the illegal trades. He also agreed to be barred from serving as an officer or director of a public company for five years.
Implications of the Case
The case serves as a reminder of the importance of compliance with the federal securities laws. It also serves as a warning to those who may be tempted to use confidential information to engage in insider trading. The SEC has made it clear that it will take action against those who violate the law.