Goldman Sachs employee tasked with detecting insider trading sued for insider trading
One of those "you couldn't make it up" stories is out. A former Goldies worker, employed to develop surveillance systems to highlight illegal behaviour is being sued for trading on insider information
In an SEC filing, Yue Han is said to have made over $468k via his own and a relatives trading account while working in a compliance department. It's alleged he had access to emails of other Goldman employees who worked on confidential deals
Despite being on notice that the info was non-public and confidential, and that he had to disclose any personal trading accounts to supervisors, and then get prior clearance to make any trades, he still managed to trade away in four companies before each of them announced M&A details
He left the company 9th Oct, and had buggered off to Shanghai Oct 22nd before his actions came to light
In a statement Goldies said;
"If the allegations are true, Han violated our trust and ignored extensive training that he received, so we are pleased that the authorities are pursuing action against him"
When I was working in the City we had to declare any personal trading accounts and have copy statements sent through direct from the broker. Failure to do so was a big no-no. There didn't seem to be that many checks in place to see whether people did have trading accounts
For all the regulations in the world you just can't stop someone determined enough act illegally and often the temptation is just to great
So a question to the readership. If you had the opportunity to trade on insider info would you? And if anyone is daring enough, have you?
