Former Goldman Trader Convicted Of Insider Trading Apologizes To Bank, Asks Judge For No Jail Time
A former Goldman Sachs banker convicted this summer for passing tips to a friend finds himself asking a judge for no jail time this week as his sentencing approaches.
Brijesh Goel asked a judge this week for no prison time and apologized to the bank for his actions, Bloomberg wrote on Thursday. He claimed that being potentially separated from his wife, who is a doctor in New York City, is "punishment enough".
US District Judge P. Kevin Castel in Manhattan will sentence the Goldman VP on November 1st.
Prosecutors are "likely" to seek prison time, the report says. His charge carries a maximum penalty of 20 years, though it is "unlikely" he'll get such a sentence.
Goel remarked: “I failed in my responsibility to adhere to the proper level of care required for guarding non-public material information I received in my position at the firm. I am extremely sorry, first and foremost to Goldman Sachs for failing at the duties I was entrusted with.”
He continued: “The saddest part was that I didn’t even need the additional money. I earned a good living and enjoyed a comfortable life. Regardless, I committed a crime and must pay the price."
"A custodial sentence would be a dramatically harsher punishment for Mr. Goel than for a US citizen convicted of the same offenses,” his lawyers remarked.
Recall, we covered Goel's trial this summer, where his friend turned on him and testified against him about his scheme that netted $280,000 from insider trades. His former literal partner in crime, 34 year old Akshay Niranjan, had recorded him and wore a wire, before testifying against him, to save his own hide.
Niranjan's testimony helped a jury return a guilty verdict in June. Bloomberg, who reported on the verdict, called it a "sad little Wall Street melodrama".
The scheme saw Goel passing tips from his job at Goldman Sachs, originating from the firm's confidential deal memos, to Niranjan.
Feds eventually got wise to the scheme and visited both men before Niranjan flipped on his former friend. The two met to discuss their plan of action in a stairwell of a building where they both lived, but Niranjan was recording the entire encounter. Goel's lawyer called his former fried a "judas" and a "Benedict Arnold", but the jury wasn't swayed and returned a guilty verdict.
Niranjan eventually testified that the two were "very close" and said at first, he thought Goel was just a great stock picker. It was after the fact that he realized he was being tipped with inside information.
“He got a lot of the trades too correct,” Niranjan said on the stand during the trial. Goel eventually took the stand in his own defense, trying to claim to the jury that he had "panicked" in deleting texts between the two men and trying to cover up the conversations, which took place in English, Hindi and "personal code", the report says.
“I thought he had done something stupid. And I thought because of his stupidity, he’s going to be in trouble, and I’m going to be in trouble too," Goel told the jury. "There was a lapse of judgement".
