McKinsey accomplice charged with insider buying and selling tied to Goldman Sachs’ acquisition of GreenSky

Puneet Dikshit

Elizabeth Williams

A McKinsey accomplice was arrested Wednesday after being criminally charged with insider buying and selling forward of Goldman Sachs’ current $2.2 billion acquisition of fintech lender GreenSky.

A grievance unsealed Wednesday in federal courtroom alleged that Puneet Dikshit, 40, exploited data he gained about his shopper Goldman Sachs’ pending takeover to purchase worthwhile name choices in GreenSky.

Dikshit, who had a lead position advising Goldman on the deal, dabbled with buying small quantities of choices within the months forward of the transaction, authorities alleged. After studying {that a} deal was imminent, nevertheless, Dikshit purchased about 2,500 name choices within the two days earlier than the Sept. 15 announcement, in response to the grievance. He finally netted about $450,000 by means of trades made in accounts at an unnamed commission-free brokerage, the U.S. alleged.

It is the newest instance of a extremely compensated skilled allegedly succumbing to the temptation to commerce off materials nonpublic data. Former McKinsey CEO Rajat Gupta was convicted of insider buying and selling in 2012 and spent two years in jail. Companions on the consultancy could make greater than $1 million in whole annual compensation, in response to recruiters.

Whereas Dikshit could be the most high-profile particular person ensnared within the GreenSky episode, it is doubtless that others had entry to deal data and traded off it, in response to individuals with data of the state of affairs. CNBC was the primary to report, in September, that suspicious trades had been made in GreenSky choices within the weeks forward of the deal.

Dikshit faces two counts of securities fraud, every with a most sentence of 20 years in jail, the Division of Justice stated Wednesday in a launch.

McKinsey fired Dikshit from his job, the corporate stated.

“We have now terminated the employment of a accomplice for a gross violation of our insurance policies and code of conduct,” McKinsey stated in an announcement offered to CNBC. “We have now zero tolerance for the appalling habits described within the grievance, and we are going to proceed cooperating with the authorities.”

Goldman stated it was “deeply dissatisfied by the insider buying and selling allegations” and can also be cooperating with the investigation, a spokesperson stated.

Dikshit’s attorneys at Kramer Levin did not instantly reply to requests for remark.

Regardless of Dikshit being a senior advisor on monetary transactions, his browser historical past on McKinsey computer systems signifies he had primary questions as he researched his trades, authorities alleged.

On Sept. 14, in response to the grievance, Dikshit Googled “what occurs to choices when firm is acquired.”

The grievance stated that Dikshit didn’t get preapproval for the GreenSky trades however that in late September, after CNBC publicized the suspicious exercise, he tried to get his trades retroactively accredited.

The ultimate Google search listed within the grievance: In early October, Dikshit ran searches associated to Gupta’s insider buying and selling conviction.

This story is creating. Please test again for updates.

— CNBC’s Jim Forkin and Dan Mangan contributed to this report.