McKinsey partner accused of insider trading in GreenSky purchase

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A partner on the McKinsey consulting agency was criminally charged on Wednesday with insider trading forward of Goldman Sachs Group Inc’s settlement to purchase fintech lender GreenSky Inc for $2.24 billion, U.S. prosecutors stated on Wednesday.

Puneet Dikshit, 40, of Manhattan, faces two securities fraud counts after allegedly producing about $450,000 of revenue from 2,500 GreenSky name choices that he purchased in the 2 days earlier than the merger was introduced on Sept. 15.

Authorities stated Dikshit led McKinsey’s unsecured lending observe in North America and had been a lead partner advising Goldman. The U.S. Securities and Exchange Commission filed associated civil costs.

Lawyers for Dikshit didn’t instantly reply to requests for remark following the defendant’s arrest on Wednesday.

McKinsey stated it has fired Dikshit for “a gross violation of our policies and code of conduct. We have zero tolerance for the appalling behavior described in the complaint and we will continue cooperating with the authorities.”

Dikshit led McKinsey’s unsecured lending observe in North America and had been a lead partner advising Goldman, federal authorities stated.
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GreenSky is a specialty lender that arranges shopper loans for giant one-time purchases akin to residence reworking, beauty surgical procedure and dental implants.

Its share worth rose 53% on the day the merger was introduced, and had been unstable on the three prior trading days, when choices trading was notably busy.

Prosecutors stated Dikshit purchased his name choices, a guess the stock worth would rise, with out receiving pre-clearance from McKinsey, and bought them shortly after the merger was introduced.

Former McKinsey partner Rajat Gupta arriving at federal court docket in June 2012.
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They additionally stated that following media reviews of suspicious trading in the choices, Dikshit sought permission to commerce in GreenSky, and was denied.

Goldman was not charged or accused of wrongdoing.

The costs have been introduced 9 years after former McKinsey chief and Goldman director Rajat Gupta was convicted of insider trading for passing ideas concerning the financial institution, together with a pending funding from Warren Buffett’s Berkshire Hathaway Inc .

Prosecutors stated Dikshit ran Google searches associated to Gupta’s conviction about three weeks after Goldman agreed to purchase GreenSky.

The instances are U.S. v. Dikshit, U.S. District Court, Southern District of New York, No. 21 mag-10772; and SEC v Dikshit in the identical court docket, No. 21-09289.