Goldman Hedge Fund Salesman Eyed In Insider Case

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.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR