Friday, 26 August 2016
Last updated 11 hours ago
Feb 29 2012 | 4:33am ET
Another Goldman Sachs executive has become the subject of some unwanted scrutiny from the Justice Department's ongoing insider-trading investigation.
Authorities are looking into David Loeb, a top salesman at the investment bank with a Rolodex full of technology hedge-fund clients. The Federal Bureau of Investigation is probing whether Loeb passed confidential information on to those clients, The Wall Street Journal reports.
News that Loeb is a target of the investigation comes just weeks after another Goldman executive, Taiwan research chief Henry King, was reported to be under scrutiny himself for leaking information to hedge funds. King and Loeb have worked closely together, including attending several meetings together with Galleon Group and other hedge funds.
According to the Journal, Loeb is the Goldman source identified as "Mr. X" by prosecutors in the case against former Goldman director Rajat Gupta, charged with tipping Galleon founder Raj Rajaratnam. Loeb is expected to testify at Gupta's trial.
An FBI agent said this week that the government is seeking to build insider-trading cases against 120 people, on top of the 66 it has already charged.