Ex- Goldman Sachs, Blackstone Employee Charged with Securities Fraud.

October 02, 2023: Federal prosecutors charged a former Goldman Sachs Group Inc. and Blackstone Inc. employee with securities fraud for allegedly tipping his friends about more than a dozen deals.

Anthony Viggiano, 26, is accused of using his position at the two Wall Street firms to obtain confidential information about upcoming deals and then passing that information to his friends. Viggiano’s friends then allegedly used the information to make profitable trades.

According to the complaint, Viggiano tipped his friends about deals involving American International Group Inc., Harmony Biosciences Holdings Inc., and CDK Global Inc. The complaint also alleges that Viggiano’s friends made hundreds of thousands of dollars in profits as a result of the insider trading.

Businesses

Businesses need to be aware of the risk of insider trading and take steps to prevent it. Businesses should have policies and procedures to protect confidential information and monitor employee trading activity.

Consumers

Consumers must know the risks associated with investing in stocks and other securities. Consumers should research before investing in any stock and be wary of any investment that seems too good to be true.

Investors

Investors need to be aware of the risk of insider trading and take steps to avoid it. Investors should invest in companies with strong governance practices and avoid investing in companies with a history of insider trading.

Conclusion

The charges against Viggiano are a reminder that insider trading is a serious crime. Insider trading undermines the integrity of the securities markets and harms investors.

Businesses, consumers, and investors should all take steps to prevent and detect insider trading.

What Businesses Can Do

Businesses can take several steps to prevent insider trading, including:

• Having policies and procedures in place to protect confidential information
• Monitoring employee trading activity
• Conducting regular training on insider trading prevention

What Consumers Can Do

Consumers can take several steps to protect themselves from insider trading, including:

• Doing their research before investing in any stock
• Being wary of any investment that seems too good to be true
• Investing in companies with strong governance practices

Insider trading is a serious crime and can significantly impact investors. Businesses, consumers, and investors should all take steps to prevent and detect insider trading.