The Securities and Exchange Commission has settled with former Goldman Sachs & Co. vice president and senior economist, John Youngdahl Jr., over pending insider trading charges against him.
The charges relate to Goldman Sachs’ purchases of U.S. Treasury 30-year bonds minutes before the Treasury Department’s Oct. 31, 2001, announcement that it would no longer issue the long bond. The Treasury Department’s announcement had a dramatic market impact, causing the largest one-day price movement in the 30-year bond since October 1987.
If the federal district court in Manhattan hearing the SEC’s civil action approves the settlement, Youngdahl will be permanently enjoined from committing securities fraud, and will pay a civil penalty of US$240,000.
He also agreed to be jointly liable for repaying the US$1.5 million trading profit that Goldman made. Youngdahl consented to the settlement, without admitting or denying the allegations.
In separate proceedings regarding the same conduct, Youngdahl today pled guilty to criminal securities fraud charges brought by the United States Attorney’s Office for the Southern District of New York.
Goldman Sachs has previously settled with the SEC regarding this matter and made full disgorgement of its trading profits. The consultant that passed the inside information to Youngdahl has also previously settled with the SEC.
The regulators says that its investigation into these events is continuing.
Former Goldman Sachs economist fined US$240,000
Youngdahl agrees to fraud injunction treasury bond insider trading case
- By: IE Staff
- November 12, 2003 November 12, 2003
- 16:40