Akshay Niranjan, a former Barclays Plc trader, testified against his friend Brijesh Goel at an insider-trading trial in New York on Wednesday. Niranjan said that insider tips he received from Goel, his friend and former Goldman Sachs vice president, helped them net over $290,000 in profits back in 2017.
Akshay Niranjan and Brijesh Goel, both IIT alums, met as business students in California in 2012. Both moved to New York in 2013. As employees of top Wall Street firms, the two stayed in touch, met for drinks, went swimming and played squash together regularly – until one turned on the other.
Niranjan is the star witness in the case against Brijesh Goel, a former Goldman Sachs executive who has been charged with insider trading by the US government. According to the US Securities and Exchange Commission, Goel in his role as Goldman VP had access to non-public information about corporate acquisition transactions. He tipped Niranjan, a close friend and a foreign exchange trader, about these acquisitions.
Niranjan in turn used this information to buy options that netted them a huge profit. He claims, however, that he grew concerned when Goel insisted on discussing trades only in person, and always texted him in coded messages. Niranjan began to suspect that the recommendations he was receiving from the Goldman Sachs VP came from confidential information.
“It was great to make money,” Niranjan told the jury on Wednesday, according to CNBC. “At the same time, I was concerned. I told him I hope he’s not breaking the law. He [Goel] said, don’t worry, he knows the rules. He would not do something as stupid as that.”
Goel gave Niranjan tips on at least eight companies, including Lumos Networks Corp., Patheon N.V., PharMerica Corporation, and Calgon Carbon Corporation.
The first such tip came in early 2017 when Goel texted Niranjan to play squash after work. At this time, Niranjan had broken up with his fiancée and was considering a return to India. He showed up to play squash after a few drinks and was slightly tipsy.
During the game, Goel asked him to buy options in Lumos Pharma Inc. Niranjan bought $2,000 worth of call options in Lumos, and days later, the company was acquired. This trade netted the duo a profit of $2,000 - only a small fraction of their total profit.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
