Goldman VP charged with insider trading, bank puts him on leave

Finance news

A Goldman Sachs banker has been charged with insider trading.

A seven-count criminal complaint unsealed Thursday charged Woojae “Steve” Jung with trading with an unnamed co-conspirator on material nonpublic information he accessed while working at an investment bank with offices in New York and San Francisco.

The complaint did not mention the bank by name, but the only FINRA record for a Woojae Jung lists Goldman Sachs as the employer. A LinkedIn profile page for a Steve Woojae Jung states he is vice president, investment banking, at Goldman Sachs.

“We are aware of the situation regarding Mr. Jung and are cooperating with legal authorities on the matter,” Goldman said in a statement. The bank also said it is putting Jung on leave.

Jung’s lawyer Christopher Steskal did not immediately respond to CNBC requests for comment.

W.R. Grace, SanDisk, KLA-Tencor and Microsemi are among the stocks allegedly involved in the insider trading scheme, the court documents showed. In each case, Jung accessed sensitive, market-moving information through the investment bank, which was involved in potential restructuring or acquisition deals, according to the documents.

In all, 37-year-old Jung and his 38-year-old co-conspirator traded in securities of 12 different companies based on the material, nonpublic information and generated profits of about $140,000 between 2015 and 2017, the U.S. Securities and Exchange Commission said in a separate complaint Thursday.

Jung purchased securities using a brokerage account held in the name of Sungrok Hwang, a friend living in South Korea, the SEC said. The commission seeks a permanent injunction against Jung, and the return of ill-gotten gains from him and his friend.

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