McKinsey’s partner in charge of insider trading is linked to Goldman Sachs’ acquisition of GreenSky
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a complaint Puneet Dikshit, 40, allegedly used information he obtained about his client’s pending acquisition of Goldman Sachs to purchase lucrative options in GreenSky.
Authorities alleged that Dixit, who had a leadership role in advising Goldman Sachs on the deal, had been involved in buying small amounts of options in the months leading up to the deal. After learning that a deal was imminent, Dikshit bought around 2,500 call options in the two days prior to September 15th. advertisementAccording to the complaint. The US claimed that he eventually made about $450,000 through deals made in accounts at an unnamed brokerage firm.
It is the latest example of a highly paid professional allegedly being tempted to trade undisclosed material information. Former McKinsey CEO Rajat Gupta was convicted of insider trading in 2012 and spent two years in prison. Partners at the consulting firm can make more than $1 million in total annual compensation, according to recruiters.
While Dikshit may be the most notorious person caught in the GreenSky loop, it’s possible that others have access to and exchange information for the deal, according to people familiar with the situation. It was CNBC first to reportIn September, those shady trades were made in GreenSky Options in the weeks leading up to the deal.
On Wednesday, the Department of Justice said in a statement that Dikshit faces two counts of securities fraud, each with a maximum prison sentence of 20 years.
The company said McKinsey fired Dixit from his job.
“We have terminated the employment of a partner due to a flagrant violation of our policies and code of conduct,” McKenzie said in a statement provided to CNBC. “We have zero tolerance for the shocking behavior described in the complaint, and will continue to cooperate with the authorities.”
A Goldman spokesperson said it was “deeply disappointed by the insider trading allegations” and is also cooperating with the investigation.
Dikshit’s lawyers at Kramer Levine did not immediately respond to requests for comment.
Despite Dixit being a senior advisor on financial transactions, his browser history on McKinsey’s computers indicates he had key questions as he researched his trades, authorities claimed.
On September 14, according to the complaint, Dikshit searched Google “what happens to options when a company is acquired”.
The complaint said Dikshit failed to obtain pre-approval for GreenSky’s trades but in late September, after CNBC reported the suspicious activity, he attempted to obtain retroactive approval for his trades.
Recent Google search included in the complaint: In early October, Dikshit conducted searches related to insider trading at Gupta conviction.
This story is developing. . Please check back for updates
CNBC’s Jim Forkin and Dan Mangan contributed to this report.