• General
  • September 30, 2021
  • 5 minutes read

Ex-Goldman Sachs Compliance Analyst Charged With Insider Trading

The US Securities and Exchange Commission (SEC) has opened a case against a former compliance analyst at banking giant Goldman…

The US Securities and Exchange Commission (SEC) has opened a case against a former compliance analyst at banking giant Goldman Sachs, accusing him of trading on insider information he obtained by the privilege of his position at the bank.

The SEC has filed charges against Jose Luis Casero Sanchez, a Spanish national and former Senior Compliance Analyst who worked in the Poland office of an “international investment bank” that the agency didn’t name. However, Goldman Sachs confirmed that he was an employee during the relevant time period.

  • According to the SEC, Sanchez had access to information on mergers and other transactions Goldman worked for clients. Ironically, he had access to sensitive information because of his role as a compliance analyst working to make sure employees kept the info confidential and didn’t engage in insider trading. However, he’s accused of being the lawbreaker his job had him on the look for.
  • The SEC claims Sanchez leveraged insider information to make trades on multiple brokerage accounts registered in his parents’ name. He allegedly refrained from making large trades to avoid detection, rather making modest profits. All in, the SEC claims he generated at least $471,000 in gains, not much on the insider trading scale.
  • With insider trading charges, the SEC has obtained a court order to freeze Sanchez’s assets, including some US-registered brokerage accounts he allegedly used to place the trades. The agency is seeking further punishment such as a fine or permanent injunction, but that’ll be up to a court to decide, with Sanchez having the opportunity to defend himself.
  • Under US law, the SEC only has the power to initiate civil proceedings against an individual but not criminal proceedings, which is the duty of the Justice Department (DOJ). The SEC often files civil insider trading charges concurrently with criminal charges from the DOJ but not in Sanchez’s case. It remains unclear if Sanchez faces any criminal proceedings. 
Goldman Sachs is the second-largest investment bank globally, only beaten by rival JP Morgan. It employs over 40,000 people across the globe, including a few hundred in Warsaw, Poland where Sanchez worked.


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