In Goldman Sachs Goel Trial for Insider Trading Niranjan on Meetings in 8 Spruce and Squash

More details, from prostitute use to mental health, here before the fold / paywall line

By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, June 14 – Former Goldman Sachs investment banker Brijesh Goel was arraigned on insider trading charges on the morning of July 28, 2022. Inner City Press there - although the arraignment had not be listed in the docket, nor announced by prosecutors.

 Goel's case was assigned to U.S. District Court for the Southern District of New York Judge P. Kevin Castel, who held the arraignment.  

  Goel is accused of feeding inside information to his graduate school friend and squash partner Akshay Niranjan, at Barclays. 

On June 12, 2023, after jury selection, the trial began with opening arguments. Inner City Press was there and live tweeted, thread here:

All rise! Judge Castel: And now, the government opening. Assistant US Attorney: Six times, Goel took inside information from Goldman Sachs. For example, in Calgon Carbon Corporation....

AUSA: Goel did this through his friend Akshay Niranjan. But then Niranjan moved to London. Goel wanted his money - and $85,000 was wired to him. The FBI showed up. Goel admitted he had shared confidential memos from Goldman Sachs. But he also lied...

 AUSA: So Goel wanted to reach out to Niranjan. But he didn't call directly. He went to the gym in his luxury building & had an attendant call for him, to try to leave no record of the call.... They met in a stairwell and whispered. Goel said, Don't reveal anything

AUSA: They met again in the stairwell and went through Niranjan's phone. But by then his friend Niranjan had agreed to help with the FBI. He had already saved the messages on his phone. He recorded Goel

AUSA: In this trial, you will hear the defendant whispering. You will hear from Niranjan himself.  As all of these proof comes in, pay close attention. Follow Judge Castel's instructions. If you do so, you will find Goel guilty

Judge Castel: Alright, defense opening. Goel's lawyer: Niranjan has fabricated his story, this trial will show, in exchange for him not to be deported, which was his biggest fear.

Goel's lawyer: They are going to ask you convict Mr. Goel on the testimony of just one man.  We're going to march through this and get to the truth. As I understand, Mr. Niranjan is going to say, I didn't want to receive inside information! I didn't know!

Goel's lawyer: Mr. Niranjan would have you believe he was tricked by Mr. Goel into an insider trading scheme. We submit that this story does not make sense. The US cites a secret account - and yes, Mr. Goel didn't know about it.

 Goel's lawyer: Niranjan has been practicing his script with the government. Wait until we have a chance to cross examine him. Other than him, there is practically no evidence - despite them calling it a five year inside trading conspiracy

 Goel's lawyer: They'll emphasize the 2 men played squash together. So, sure, they texted each other. Nothing nefarious about that. On the obstruction of justice charge, the evidence is actually going to show there was no obstruction. Brijesh did say, let's delete

 Goel's lawyer: But Brijesh went to so say, DON'T delete. It was Niranjan who deleted, while trying to get his non prosecution agreement. Let me tell you about Brijesh. He grew up in a modest home in India, and went to the Harvard of India. Then U Cal Berkeley 2013

 Goel's lawyer: He worked at Goldman Sachs until 2021, and now at Apollo. He's on leave - to their credit, they are taking a wait and see approach -- AUSA: Objection! Judge Castel: Let me see you at sidebar

They're back. Goel's lawyer: Brijesh got married in 2014, to a doctor. She unfortunately is not present --

AUSA: Objection!

Judge Castel: Let me see Mr. Ford at the sidebar.

 After a long sidebar, Ford is back.

Ford: Let's talk about Niranjan. They met at Berkeley. Notwithstanding their friendship, Niranjan was jealous of Mr. Goel's success... Now let's talk about the 6 supposed tips. There was six trades, only two of which made money

Ford: We will admit that Goel for three months violated Goldman Sachs' policy against trading in individual stocks. It was brief. But Goel sent Niranjan $12,000. Why would he do that if Niranjan owed him money? Nirajan started doing a lot of illicit drugs

Ford: We'll show that Niranjan suffered from cannabis use disorder, which may have impacted his memory... I'll close with this. As with the Canadian forest fire smoke, all this can seem murky. But as with the smoke, in a week we'll clear it up. Thank you.

Judge Castel: Jurors, we'll see you tomorrow. [Jury leaves] Judge Castel: Tomorrow I'll give them the standard legal instruction. We are adjourned.

On June 13, more stage-setting witnesses leading up to Niranjan on June 14. The last was a Hindi translator who resisted taking a position on what the word "delete" meant, or didn't mean. Thread:

All rise! Judge Castel: I will start with some instructions, on what is not evidence. [Gives an example about the Yankees and Derek Jeter, not the new "all rise," Aaron Judge] Jurors, no texting or tweeting. Judge Castel: The government is not on trial. [Some may question the deal they gave to cooperator Niranjan].

Defendant's counsel may choose to cross examine.  Government, call your first witness. They are starting with a credit risk officer at Goldman Sachs.

 Now prosecutor reading a stipulation, about Goel being on the Goldman Sachs email list about prospective mergers. Defense: No objection. Evidence continues slogging in until, now, Judge Castel declares a break. AUSA makes a record about a subpoena return.

Finally, a new witness in US v. Goel. But it is still not the cooperator Akshay Niranjan, but rather a reviewer of Niranjan's phone messages - hired by Niranjan. Cross: Goel's counsel: Mr. Niranjan gave you his phone on June 2, 2022, correct? Witness: Yes.

 Goel's counsel: And he's paying you, yes? Witness: I don't know. Goel's counsel: Let me show you the engagement letter...  Now after another break, a FINRA witness, and now, a Hindi interpreter

Things get testy with the Hindi interpreter on cross; Judge Castel tells the jurors to not take their notebooks home. Cooperator Niranjan is slated to testify tomorrow. Government says they anticipate disputes about the scope of cross.

On June 14, finally, Niranjan took to the stand, but not yet on cross. Thread here:

Judge Castel: Jurors, yesterday I told you about what happened in the Revolutionary War right near here. In 1777, our early flag was adopted. [Judge Castel to his credit has posters about history on his walls. He also issued this

AUSA: The US calls FBI Special Agent Mark Troiano. He works on securities and commodities fraud. He says, "We serve subpoenas and investigate." AUSA: What did you do before? Troiano: NSA and CIA. AUSA: Did you work on this case? Troiano: I wired up sources

AUSA: Did you interview Mr. Goel? Troiana: Yes. At his apartment in the luxury building at 8 Spruce Street in the Financial District, not five minutes from the courthouse. AUSA: Show Gov Exhibit 108, the transaction description...

AUSA: Did you take photos in 8 Spruce? Troiana: Yes. That is the front entrance. 31 is a photo of Niranjan's apartment on the 46th floor. 25 is stairwell on the 46th floor, the door. On the 7th floor there is a pool and a gym. And a lounge where they met

AUSA: We have a stipulation about the security video.  Troiano: That's Mr. Goel. Here in Exhibit 38, it's Niranjan. I wired him up on June 10. And here are the WhatsApp messages. AUSA: Were these messages also available on the iCloud?

Troiano: No. AUSA: What did Mr. Goel say, in this text message, to Mr. Niranjan? Troiano: He said, Let's play squash after work. Niranjan replied, I have drinks to go to. AUSA: So Goldman Sachs memo on the 12, messages on the 13th, and trades on the 14th? Troiano: Yes.

 Now cross examination of FBI agent Troiano Goel's lawyer: The June 5 recording by Mr. Niranjan, did the FBI help with with it? Troiano: No, we did not ask him to do that. Goel's lawyer: But you've listened to it, right? Troiano: Yes. Portions of it.

 OK - at last, cooperator Niranjan on the witness stand. Judge Castel is reviewing an objection. Will cross examination begin today? AUSA: Mr. Niranjan, what is this? Niranjan: A trade summary of trade I made in my brother's account. I bought options in Patheon

AUSA: Let's read the message. What did you understand the defendant to mean by "today"? Niranjan: That it was time sensitive. We met outside the restaurant. AUSA: Who brought up Patheon? Niranjan: Brijesh. I had not heard of the company. I looked it up on my phone

 Niranjan: I told him, do not write coded messages.  I told him, in person, that I had bought the Patheon options. AUSA: How much did you put in? Niranjan: $3000. I made about $30,000. In a month. It was announced they would be acquired.

 Niranjan: It was good to make money. But I was concerned he was breaking the rules. He told me he wasn't.  AUSA: Did you believe him? Niranjan: I wanted to believe him.

Niranjan: Next we traded in Calgon Carbon. Brijesh met me on 49th Street and 7th Avenue, across from the Kitchen restaurant.  AUSA: Why did you just not do it by message? Niranjan: He had said, Let's not leave a paper trial.

Niranjan: Into the Calgon trade, I put $15,000 - and made over $200,000.  AUSA: Were you tell your now wife, to whom you were engaged at the time? Niranjan: No. I thought she would react negatively to me doing this in a shady manner.

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