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

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...