A top Goldman Sachs manager is in the crosshairs of an aggressive bid by federal authorities to snuff out illegal insider trading.
According to a Wall Street Journal report , investigators are looking into whether Goldman managing director David Loeb illegally passed inside information about technology stocks to the firm's hedge fund clients.
Check Out Advanced Trading's Gallery of the Most Notorious Insider Trading Cases of 2011.
Loeb is a senior-level salesman at the firm and acts as a middleman between Goldman and some of its most important clients, the WSJ said. Authorities are looking to determine whether Goldman technology analyst Henry King also illegally passed information about technology companies to the firm's hedge fund clients, the newspaper said, citing sources familiar with the matter.
In addition to the latest insider trading investigation, Loeb's name was also mentioned during the trial of Galleon Group hedge fund founder Raj Rajaratnam, and in former Goldman director Raj Gupta's upcoming insider trading case.
Recent court filings in the government's insider-trading case against Mr. Gupta referenced an "insider at Goldman Sachs" other than Mr. Gupta who provided information to Mr. Rajaratnam. That other insider is Mr. Loeb, people familiar with the matter said.
The investigation of Messrs. Loeb and King may not result in charges against them. Representatives for the Federal Bureau of Investigation and Manhattan U.S. attorney's office, which are conducting the insider-trading probe, declined to comment.
Federal authorities are looking to build insider-trading cases against roughly 120 individuals, the FBI said Monday. The disclosure quantifies for the first time the number of people under scrutiny.
Mr. Loeb, a 10-year Goldman veteran who was named a managing director in 2009, was mentioned by a defense witness during the insider-trading trial last year of Mr. Rajaratnam, founder of the Galleon Group of hedge funds. Mr. Rajaratnam was convicted and is serving an 11-year prison sentence.
As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio