Former Goldman Sachs employee convicted of insider trading

Mohammed Zina – a former analyst of Goldman Sachs Group Inc (NYSE: GS) has been convicted of insider trading in London. He’ll be sentenced on Friday.

Zina used insider information to invest in Arm

The ex-Goldman Sachs International employee was found guilty of using confidential information to invest in six companies following a trial at the Southwark Crown Court.

He bought shares of the said companies between July 2016 and December 2017 and made over £140,000 ($175,650) out of them.

Notably, Zina used insider information to invest in Arm Holdings before SoftBank publicly announced plans of buying the chip design firm for $32 billion. Steve Smart – joint executive director of the Financial Conduct Authority said today:

Zina lied to get a loan for insider trading

Note that Zina took a sizable loan from Tesco Bank to make the investments. He was accused by the prosecutors of lying to the bank regarding the purpose of that loan as well.

All in all, he was found guilty of all nine counts this morning in London. According to a Goldman Sachs representative:

The news arrives about a month after Goldman Sachs reported revenue for its fiscal fourth quarter that handily topped Street estimates. $GS is currently up more than 30% versus its low in late October.