Goldman banker subject of insider trading probe

April 27, 2012 | Last updated on April 27, 2012
1 min read

A Goldman Sachs investment banker, Matthew Korenberg, is currently the subject of a long-running probe by federal prosecutors in California— he allegedly shared information about pharmaceutical mergers with an employee of the Galleon Group.

His lawyer, John Hueston, says the probe of his client has been a “two-and-a-half year fishing expedition that’s led to nothing,” and claims it’s unrelated to high-profile insider-trading prosecutions centered on the Galleon Group hedge fund.

The investigation involves insider-trading allegations related to an acquisition in the health care industry, according to an anonymous source close to the case.

A representative of Goldman says, “We have fully co-operated with federal authorities in this matter for the past two years and Korenberg remains actively employed by the firm.”

The New York Times reported Korenberg’s identity on Thursday. The investigation surfaced last week during a pre-trial hearing in the U.S. attorney’s insider trading case against Rajat Gupta, a former Goldman Sachs board member accused of passing inside information to the same galleon hedge fund manager.

Read: Goldman Sachs fined $22-million

Two other Goldman employees have surfaced as part of the investigation, but neither has been charged with any wrongdoing.