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McKinsey partner charged with insider trading tied to Goldman Sachs’ acquisition of GreenSky

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Rafael Henrique | LightRocket | Getty Images

McKinseyAfter being charged criminally with insider trading, a partner was taken into custody Wednesday Goldman SachsRecent $2.2 Billion acquisitionGreenSky, a fintech lender

According to a report, Puneet Dhikshit, a McKinsey partner aged 40, used information about Goldman Sachs to purchase profitable GreenSky call options. complaintFederal court has unsealed the Wednesday case

Authorities claim that Dikshit was the lead advisor to Goldman and tried small purchases of options over the three months prior to the transaction. Dikshit, who learned of the impending deal, bought approximately 2,500 call options within the first two days. announcementThe complaint claims that he was. The U.S. claimed that he eventually made about $450,000 by trading in unnamed, commission-free brokerage accounts.

This is the latest instance in which highly-paid professionals gave into the temptation of trading off non-public material. Rajat Gupta (ex-CEO McKinsey) was sentenced in 2012 to insider trading. He spent the next two years behind bars. According to recruiters, partners at the consulting can earn more than $1,000,000 in annual compensation.

Dikshit might be the highest-profile victim of GreenSky’s episode. However, people who are familiar with the matter believe that other individuals had trade access to the deal information. CNBC was the most watched network in September. first to reportIn the weeks leading up to the deal, suspicious trades in GreenSky options were reported.

The Department of Justice released Wednesday that Dikshit is facing two charges of securities fraud and a maximum sentence of twenty years imprisonment.

McKinsey, McKinsey’s employer, fired him in a statement that was provided to CNBC. Kramer Levin’s Dikshit lawyers didn’t respond immediately to inquiries for comment.  

McKinsey released a statement saying that McKinsey had terminated the partnership’s employment due to a “gross violation” of policies and codes of conduct. McKinsey stated that they have no tolerance for the “appalling” behavior described in the case and would continue to work with the authorities.

Goldman expressed its disappointment at the insider trading allegations and said that it is cooperating with investigations.

Authorities claimed that Dikshit, despite being an advisor to senior financial traders, had a McKinsey browser history which indicated he was able to ask basic questions while researching his trades.

According to the complaint, Dikshit searched Google for “what happens when company acquires options” on Sept. 14.

Although Dikshit was unable to obtain preapproval to trade GreenSky, CNBC reported the suspicious activity in September. He attempted to have his trades approved retroactively, according to the complaint.

Final Google search included in the complaint was Dikshit’s early October searches regarding insider trading convictionRajat Gupta

This is a developing story. Stay tuned for new updates.

CNBC’s Jim Forkin & Dan Mangan report.

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