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McKinsey ex-partner gets 2 years prison for insider trading on Goldman purchase -Breaking

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© Reuters. FILEPHOTO: This is the office of U.S. District Court of the Southern District of New York. It was taken in New York on March 25, 2019, U.S. REUTERS/Carlo Allegri

Jonathan Stempel

NEW YORK (Reuters) – A former McKinsey & Co partner who helped advise Goldman Sachs Group Inc (NYSE:), for its recent acquisition of GreenSky Inc, the fintech lender was sentenced Wednesday to 2 years prison time for insider trading. Puneet Dhikshit (41), pleaded guilty to securities fraud charges in December.

U.S. District Judge Colleen MacMahon, who sentenced Dikshit in Manhattan federal court, ordered him to forfeit $455.017 for his illegal profits.

Dikshit acknowledged that he purchased GreenSky options to bet on the stock’s price rising, just before the announcement of the $2.24 Billion merger. He said that he was deeply sorry.

Prosecutors claimed that the Manhattan resident bought his 2,500 call option options, without McKinsey’s pre-clearance. They were then sold shortly after the announcement of the merger.

According to prosecutors, Dikshit led McKinsey’s North America unsecured lending business and was a partner in advising Goldman.

Following his sentence, Dikshit, a married father to two children under the age of 18, will be deported. Dikshit is a native of India and had resided in America for over ten years.

Wall Street and Main Street will see that corporate advisors who steal data entrusted by them for personal gain and use it for their own profit are being prosecuted,” U.S. attorney Damian Williams, Manhattan, stated in a statement.

The lawyers for Dikshit didn’t immediately reply to our requests for comment.

GreenSky’s shares rose by 53% in the wake of the announcement. Goldman, on March 29, announced the completion of its merger. The bank has not been charged or accused in any way of wrongdoing.

U.S., v. Dikshit. U.S. District Court SouthernDistrict of New York. 21-cr-00760.

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