Heinz Insider Trader Revealed: A Goldman Client

Tyler Durden's picture


The saga of the Heinz call option insider trade, first profiled here, and the Goldman trail, also first observed here ("Does GS stand for Goldman Sachs one wonders"), just got even more fun as revelations that it was none other than a client of Goldman's Private Wealth group out of Zurich that hit the buy key on those thousands in call options one day ahead of the announcement. From Reuters: "A Goldman Sachs private wealth client is the holder of the Swiss account at the center of an investigation into insider trading in H.J. Heinz Co options, regulators said in a court filing late Wednesday." Alas, and as before, the question of who leaked the inside information to this Goldman client still remains unanswered.

The U.S. Securities and Exchange Commission filed a lawsuit against unknown traders last week, alleging they used a Goldman account in Zurich to buy an unusual amount of Heinz options the day before the ketchup maker agreed to sell itself for $23 billion.


In an SEC application to freeze the defendants' assets, dated February 15 but filed with the court Wednesday, staff attorney David Brown said the commission had been told by Goldman that "the account holder is a Goldman Sachs Private Wealth client in Switzerland."


In another application also dated February 15 and filed Wednesday, Brown's colleague Megan Bergstrom said Goldman had informed the SEC "it does not have direct access to information about the beneficial owner or owners behind any particular transaction or position" in the account.

The minimum net worth to be a Goldman Private Wealth client in Switzerland is....

And now back to regularly scheduled Great Rotation as quadrillions in imaginary retail money flow into a stock market which was, is, and always will be a massive cesspool of inside information, with one name always reappearing at the top.

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Thu, 02/21/2013 - 16:20 | 3264571 Godisanhftbot
Godisanhftbot's picture

 why buy the Junes?

Thu, 02/21/2013 - 16:23 | 3264590 The Juggernaut
The Juggernaut's picture

Zurich account?  ...Even after DC going after American citizens for tax dodging?  ...This was probably an American politicians account.

Thu, 02/21/2013 - 16:27 | 3264617 MiguelitoRaton
MiguelitoRaton's picture

My guesses: (a) John Kerry; (b) Jon Corzine...

Thu, 02/21/2013 - 16:31 | 3264632 icanhasbailout
icanhasbailout's picture

They were Senators together, so "both in collusion with each other" is also a distinct possibility.

Thu, 02/21/2013 - 16:37 | 3264651 The Juggernaut
The Juggernaut's picture

(c) Eric Holder... I like this game.  Lets see what politician receives the biggest Heinz donations/lobbiest reach-arounds.

Thu, 02/21/2013 - 16:40 | 3264661 Careless Whisper
Careless Whisper's picture

...Goldman had informed the SEC "it does not have direct access to information about the beneficial owner or owners behind any particular transaction or position" in the account...

A secret numbered-only Swiss GoldmanSachs account, who could've guessed?

Thu, 02/21/2013 - 16:42 | 3264676 tip e. canoe
tip e. canoe's picture

they're stalling.
must be a big fish.

Thu, 02/21/2013 - 16:46 | 3264697 Joe Davola
Joe Davola's picture

0.  Not named Soros?

1.  Are you a chick? (Martha Stewart Rule)

2.  Have you made any political contributions?

3.  Which party?

4.  How much?

Thu, 02/21/2013 - 16:51 | 3264714 Richard Chesler
Richard Chesler's picture

"Goldman Sachs Private Wealth" is a code word for "Stolen US taxpayer funds".

Thu, 02/21/2013 - 17:04 | 3264759 gmrpeabody
gmrpeabody's picture

Eric Holder is going to be all over this like stink on...,

Oh..., wait..

Thu, 02/21/2013 - 17:22 | 3264821 Thomas
Thomas's picture

Look at Heinz shares for months before the announcement. Looks like somebody had a serious buy program in place.

Thu, 02/21/2013 - 18:14 | 3264989 Careless Whisper
Careless Whisper's picture

somebody? I hate to beat a dead horse, but Mister Suck-It-Up has been awfully quiet lately.


Thu, 02/21/2013 - 19:34 | 3265230 Jack Napier
Jack Napier's picture

What do John Heinz and John Kerry have in common besides sharing a wife? They probably shared the same coffin in their initiation to the Brotherhood of Death. Of course Kerry would have told his fellow bonesmen in advance. Gotta grease those palms. 322 bitchez.

Thu, 02/21/2013 - 20:31 | 3265399 Dave Thomas
Dave Thomas's picture

Holy shit Mr. Munger looks like Jabba the Hut's son. Hey Banzi that's your cue!

Thu, 02/21/2013 - 17:24 | 3264826 TruthInSunshine
TruthInSunshine's picture

If Goldman is being accused of wrong doing, I can assure all of you that Eric Placeholder will personally perform the medical examination of that Muppet cadaver depicted above, and conclude that he died of a self-inflicted gunshot wound to the very back center of his head.

Mary Jo White will take her cue from Placeholder's investigation, and the SEC will also clear Goldman of any impropriety or illegal activity.

Case closed.

Thu, 02/21/2013 - 18:41 | 3265073 JR
JR's picture

Goldman Sachs has highly paid teams of lawyers whose job it is to protect the “bank” from lawsuits and/or criminal investigations.  And as soon as the news broke on the Heinz transactions, those lawyers were hard at work to find the protection they needed to get Goldman off the hook. Why else would you pay these guys if they can’t at least keep you out of jail?

It looks again as if Goldman is slipping out of the noose.

Thu, 02/21/2013 - 17:25 | 3264827 Thomas
Thomas's picture

Fuckup delete. In its place, I'll mention in the context of Heinz what to watch for after a prostate biopsy--(hint: Heinz meets chicken choking.)

Thu, 02/21/2013 - 22:47 | 3265730 rosiescenario
rosiescenario's picture

...uh, would you mind lifting that rug a bit for me, I am busy with the broom....

Thu, 02/21/2013 - 16:43 | 3264683 Cursive
Cursive's picture

@Careless Whisper

How the hell does one file suit against an unknown defendant?  Is this from The Onion?

Thu, 02/21/2013 - 17:16 | 3264797 SmittyinLA
SmittyinLA's picture

if when you say "the Onion" you mean the federal government, YES its from the Onion.

Thu, 02/21/2013 - 16:45 | 3264689 earnyermoney
earnyermoney's picture

I believe a water board treatment could extract the information.

Thu, 02/21/2013 - 17:08 | 3264771 sgt_doom
sgt_doom's picture

Say, just for the record, wasn't the last Goldman Sachs crook to go to jail, Chelsea Clinton's former father-inlaw?

Just asking.....

Thu, 02/21/2013 - 16:33 | 3264642 Xibalba
Xibalba's picture

NOPE ... it was their wives.  


See!  All is fine here...move along.

Thu, 02/21/2013 - 16:51 | 3264701 hedgeless_horseman
hedgeless_horseman's picture



Kashya speaks...

“My interest in the HNZ purchase was motivated by the fact that it was at a record low and almost ridiculously cheap when priced in CHF.”


"It is a fact that 70 to 80 percent of the condiment consumption of my art gallery's bistro is catsup. The reason is that although the artists come from many different ethnic groups, no matter where they are from, everyone around the world loves catsup."

Thu, 02/21/2013 - 16:52 | 3264717 earnyermoney
earnyermoney's picture

LOL. Nice

Thu, 02/21/2013 - 16:59 | 3264742 resurger
resurger's picture

The cougar on prowl, put some of that HNZ on me...

Thu, 02/21/2013 - 17:04 | 3264757 ptoemmes
ptoemmes's picture

Dammit, it's ketchup.

Thu, 02/21/2013 - 17:19 | 3264808 McMolotov
Thu, 02/21/2013 - 16:48 | 3264706 lakecity55
lakecity55's picture

a swift boater or a swift crook.

Thu, 02/21/2013 - 17:38 | 3264878 booboo
booboo's picture

you are correct that our chief negrotiator at the state department is behind this with a promise to funnel it back to Theresa.

Thu, 02/21/2013 - 22:49 | 3265736 rosiescenario
rosiescenario's picture

....it is to teach the Russians to return phone calls....they, too, could have profited nicely had they called back....

Thu, 02/21/2013 - 19:09 | 3265144 outofhere
outofhere's picture

What's the name of that congressman married to a ketchup bottle?  hmmmm

Thu, 02/21/2013 - 17:13 | 3264788 rodocostarica
rodocostarica's picture

Right on GODISANHFTBOT? Why spend more and buy the June calls? This alone mayby says the tip off guy was not sure of the date or the GS account prick just wanted to make sure he was right or put off the SEC. Pretty fishy smelling all told.

Thu, 02/21/2013 - 17:25 | 3264833 RhoneGSM
RhoneGSM's picture

February would have aroused suspicion. This is no ordinary muppet. Sheehs!

Thu, 02/21/2013 - 16:21 | 3264577 Stoploss
Stoploss's picture


Thu, 02/21/2013 - 16:33 | 3264639 Motorhead
Motorhead's picture

Some "shitty deal" that was.

Thu, 02/21/2013 - 16:21 | 3264579 RacerX
RacerX's picture

Tx ZH. I was wondering if this was ever going to come out.

"Private Wealth". So that's the codeword.

Anticipation: http://youtu.be/uoLoyg3JKRQ

Thu, 02/21/2013 - 16:21 | 3264580 imaginalis
imaginalis's picture

Well that's okay then. I was thinking some criminal activity had been carried out.

Thu, 02/21/2013 - 16:23 | 3264585 SeverinSlade
SeverinSlade's picture

How funny would that be if we found out that new Secretary of State John Kerry was a GS client that benefitted from this insider trade.

Thu, 02/21/2013 - 16:39 | 3264665 Vagabond
Vagabond's picture

It wouldn't be that funny... nothing would happen.

Thu, 02/21/2013 - 17:09 | 3264777 gmrpeabody
gmrpeabody's picture

I wouldn't worry too much about THAT ever happening...

Thu, 02/21/2013 - 16:22 | 3264588 nobusiness
nobusiness's picture

Can we ever get 2 days in a row down??  Looks like they are trying to stop it

Thu, 02/21/2013 - 16:26 | 3264607 WTF_247
WTF_247's picture

2 days down = panic time.  They cannot have that.

Bernanke is probably in the futures market buying the crap out of it to close it positive.

10 days up in a row is totally fine though - that is what is intended.

Thu, 02/21/2013 - 16:25 | 3264603 nobusiness
nobusiness's picture

Never mind it's a Goldman Client.  back to the porn

Thu, 02/21/2013 - 16:25 | 3264604 Number 156
Number 156's picture

Dark Pools?

Thu, 02/21/2013 - 16:26 | 3264608 pods
pods's picture

Probably the same group that bought puts on the airlines right before 911.


Thu, 02/21/2013 - 16:40 | 3264659 Kitler
Kitler's picture

No need to investigate if they have no known ties to Al Qaeda.

Probably just someone who has access to 'Omnivore'.


Thu, 02/21/2013 - 17:12 | 3264785 helping_friendl...
helping_friendly_book's picture

Kitler is back!

Your avatar has been missed.

Thu, 02/21/2013 - 17:45 | 3264902 A. Magnus
A. Magnus's picture

If you remember the 7/7 London bombings there were a shit ton of British Airways shorts piled on in the weeks before that little false flag as well - nobody ever got called out on those either...


Thu, 02/21/2013 - 22:52 | 3265742 rosiescenario
rosiescenario's picture

...ok, so someone should be checking to see if there were unusual puts bought on Carnival a few weeks ago?


Could be the handiwork of a 'pro-active' short seller?

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