A trader says he got tipsy and received some insider info from a buddy while playing squash. The details were revealed at a court hearing this week in an insider trading case against a former Goldman Sachs trader. A former Barclays trader testified against Brijesh Goel, who revealed info on a company that was about to be acquired. Loading Something is loading.
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The squash court is not the most obvious venue for swapping insider trading info, but that’s exactly where some sensitive material may have been divulged by a former Goldman Sachs trader, a court heard this week.
In a hearing in Manhattan in the insider trading case against ex-Goldman trader Brijesh Goel, former Barclays trader Akshay Niranjan testified that Goel asked him to play a game of squash after work one day, and despite having already been out for drinks, he showed up to the court. During the game, Goel told Niranjan about a company called Lumos Pharma and recommended buying options.
In coded messages the following day, Goel asked if Niranjan had purchased the options, and a few days later the company announced it was being bought, sending its stock price higher. The trade generated a profit of $2,000, according to Bloomberg.
Niranjan said the profit from the Lumos trade was just a small part of $280,000 the two buddies made from insider trades during the course of 2017, and Lumos was one of eight companies that Goel shared info on.
According to Bloomberg, Goel says he’s been set up by Niranjan, who he claims is looking to avoid punishment for insider trading. The two former traders aren’t mere acquaintances. Bloomberg’s report says the buddies often traveled together, and Goel was a groomsman in Niranjan’s wedding.