The SEC filed criminal charges against a former Goldman Sachs and Blackstone employee. The charges are for allegedly passing insider tips to friends who profited from illegal securities trading.
The U.S. Justice Department and Securities and Exchange Commission accused 26-year-old Anthony Viggiano of securities fraud through a tipping scheme that generated over $400,000 in illicit gains.
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Prosecutors allege Viggiano provided nonpublic details on over half a dozen upcoming deals to two friends while employed at the Wall Street firms.
Viggiano allegedly used Signal and Xbox Chat to share tips
The complaint states he tipped them on acquisitions and other transactions after learning confidential details through his work through Signal and Xbox chat.
Viggiano’s friends then allegedly traded on insider information and split profits with the former analyst. One friend netted $322,000 from the tips and paid Viggiano $35,000 in cash, according to regulators.
Officials say Viggiano tried covering his tracks by using encrypted messaging apps and cash payments. But authorities eventually uncovered extensive communications coordinating the trades.
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The SEC complaint provides details of specific trades conducted by the ex-Goldman Sach’s employee’s associates based on tips about upcoming deals. Deals named include transactions involving American International Group, Harmony Biosciences Holdings, and CDK Global.
Regulators say the associates immediately executed trades on the insider information by the former Goldman Sachs employee and closed out positions once deals were announced. Additionally, the SEC seeks disgorgement of all profits from the alleged scheme.
The complaint serves as a reminder that financial regulators aggressively pursue insider trading in legal and regulatory enforcement actions.