Insider Trading Probe Turns Toward Goldman Sachs Analyst

By Walter Pavlo

The Wall Street Journal has reported that federal criminal authorities are investigating Goldman Sachs analyst Henry King who they believe leaked inside information to hedge funds.  King, a respected analyst at Goldman, covered high-tech supply chains in Taiwan.  One of King’s clients that he supported was Galleon Group.

Galleon Group, co-founded by Raj Rajaratnam, has closed its operations and Raj is now serving an 11 year prison sentence after being found guilty of charges related to insider trading. Rajat Gupta, a former friend of Rajaratnam and a former member of Goldman Sach’s board, has also been charged with insider trading and his trial begins in April.  This investigation into King represents a new direction in the insider trading investigation in New York that has already led to convictions of 56 people.

According to Bloomberg, Henry King is based in Hong Kong and took a leave of absence from his position after traveling to the United States in January.  There, King was co-head of Asia technology research and New York-based Goldman Sachs’s Taiwan research.

There have been a number of hedge fund managers, expert network consultants, lawyers and traders who have been caught up in U.S. Attorney Preet Bharara’s investigation into corruption on Wall Street involving insider trading.  Arrests associated with the investigation have heated up in 2012 withseven (7) people charged in January and one last week, Doug Whitman, a hedge fund manager at Whitman Capital.  It looks like this is going to be a busy year.  Stay tuned.

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