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Goel Guilty in Goldman Sachs Trial for Insider Trading Now Gets 36 Months, GS Asks Fees

By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, Nov 1 – 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.

On June 15, finally Niranjan under cross - including on whether he overheard (eavesdropped on) Goel's call with others at Goldman Sachs about a deal, while driving north to a skiing trip in upstate New York. Here's some of it, thread:

Jury entering!

AUSA: Mr. Niranjan, when did you and Mr. Goel meet after May 2023? Niranjan: In the stairwell of 8 Spruce, 45th floor. On June 5, 2022, 11 am. AUSA: How was it arranged?  Niranjan: The receptionist called me on the intercom, for Goel, about squash 

Niranjan: I was recording him on my phone, when it went off. I tried to push the side buttons so Goel wouldn't hear it. AUSA: What language were you speaking? Niranjan: A mixture of English and Hindi.

AUSA: Let's listen to it [Jurors turn to 7-T in binders]

Niranjan: Goel told me to use a code,  in our group chat with other UC Berkeley grads. He told me, mention Tesla - and it means the person will stay on the 7th floor of 8 Spruce Street, to meet. AUSA: Let's talk about your non-prosecution agreement

Niranjan: I have to forfeit $280,000 and cooperate, testifying. Then I don't get prosecuted for insider trading

Now at last, the cross examination of Niranjan.

Goel's lawyer: Do you have not seen all of your brother's trading records, right?

 Niranjan: Some months I have not seen.

Goel's lawyer: What months? Niranjan: Some months in 2018. Goel's lawyer: Which?

 Goel's lawyer: Isn't it a fact that you were in a car with Mr. Goel & you overheard him having multiple conversations with people at Goldman Sachs about Sprint?

Niranjan: I don't remember. Goel's lawyer: You had WhatsApp with Mr. Goel about a trip skiing upstate

Niranjan: I remember we went skiing. I drove one part of the way.

Goel's lawyer: And Mr. Goel had to make phone calls?

Niranjan: Yes, I think he was working. But I was focused on the road. And talking with Natasha. And listening to music.

On June 16, Niranjan finished, cross and re-direct (and was spotted by the courthouse cafeteria on 8, talking about going to the prosecutors' office on the 5th floor), thread here

Goel's lawyer: Do these call records refresh your recollection that your fiancee was working when you got back from Toronto?

Niranjan: No. I had my own apartment at that time

Goel's lawyer: Did you meet with Mr. Goel on Calgon before he went to the US Open? A:

 Goel's lawyer: And you chatted often with Mr. Goel on WhatsApp? Niranjan: Is that a question? Goel's lawyer: Yes. Niranjan: Yes.

Q: Your fiancee had moved to 320 West 38th St, and you live in the West Village but visited her and Goel on 38th St? Niranjan: Yes.

Goel's lawyer: And Mr. Goel would visit you in your apartment? Niranjan: No. He did not like my apartment, it was a walk-up. I got complaints when I played music there.

Goel's lawyer: You would access Mr. Goel's phone through the AirPlay app to play music on TV?

 Niranjan: I had his wi-fi information, he gave it to me, so I could connect my phone to his music system.  Goel's lawyer: You understand that Goel's password for the wi-fi was also his password for his iPhone? Niranjan: No.

 Goel's lawyer: Did you use Mr Goel's phone on the trip, texting from it? Niranjan: Maybe you can refresh my recollection. Goel's lawyer: Please read from page 22. 

Niranjan: OK, I did, because my phone was dead. But he never shared his password for his computer

Niranjan: OK, during pandemic I used Natasha's computer, her Surface laptop. I had the code but I don't remember it anymore.

Goel's lawyer: How about passwords for apps like TripCase?

Niranjan: What is TripCase? Goel's lawyer: Please look at this... Did he give you his TripCase password?

Niranjan: Yes. Goel's lawyer: So on this date, you spoke with Mister Niranjan? Niranjan: I am Mr. Niranjan.

 Update: Now during US v. Goel trial lunch break, seen on the 8th floor of the courthouse (by the cafeteria)- a certain cooperating witness, saying to his lawyer, We could go down to 5.  The 5th floor, where the US Attorney's Office has space next to the Mag court

Now re-direct of Niranjan: AUSA: When you watered Brijesh Niranjan's plants did you ever see any Goldman Sachs deal memos lying around? Niranjan: No.

Niranjan is done; now US puts on the stand Goldman Sachs' head of investment banking legal compliance. His name is Omar Beer.

Then -

SURPRISE - defendant Brijesh Goel has just taken the stand. Goel's lawyer: When did you know there was a problem with Mr. Goel?

Goel: By mid 2021, Mr. Niranthan had separated from his wife. He was going through issues. I was there for him.

 Goel's lawyer: After you played squash in late February [2022] what did you learn? Goel: Niranjan said his life was coming to an end, he was planning to go to India. I said I could help him get a job.

Goel's lawyer: Did you meet at Quality Meats? Goel: Yes. I was working at Apollo. He wanted to come by. I said, I'm going to London. He came to my work event anyway, to Quality Meats

Goel: He said he was having problems, with his wife and at work. He showed me an article on his phone, it was on airplane mode.  He asked, Do you know this company? I said no. He said, Goldman Sach was involved in the deal

 Goel: At Berkeley we were not really good friends. But we became so in New York.  When he separated for the second time we became very close-

AUSA: Objection! Judge: Sustained. Goel: Should I continue? Judge: No

 Goel: The FBI came to my home. I thought it was a scam. We chatted for 35 or 40 minutes at my kitchen table. They asked about various friends of mine, one at a proprietary trading firm in London.  Then they asked about Mr. Niranjan.

Goel: At the end of the meeting they gave me a subpoena. I was shivering. I told them, I am concerned about my reputation.  They said, It's a confidential investigation but word tends to get out. 

Goel's lawyer: On May 23, did you speak with Niranjan? Goel: Yes

 Goel: I went to the club room, asked the assistant to call Mr. Niranjan and ask him to bring my swimming cap down.  Then my wife went up; He came down & grabbed me- Judge: Let's call it a week.

On June 20, after a three day weekend complete with disputes about drugs and cheating, the evidence ended, and two summations. Inner City Press was there, thread here:

OK - now Goldman Sachs insider trading trial of Goel set to re-start, defendant on the stand. But Judge Castel says Juror 3 has COVID, tests being brought up for other jurors.  Jury entering! Judge Castel: Juror number three is done. She began to feel ill on Friday, then tested positive for COVID. My deputy Flo has rapid tests, available for you to take at your convenience. Does anyone want to take it now? No? Ok, we'll begin

[Trial resumes- no juror asked for immediate COVID test] Judge Castel: Mr. Goel you are still under oath.

Goel's counsel Ford: So when we left off, you were in the 7th floor stairwell of 8 Spruce. Why did you want to meet him?

Goel: FBI had come to my apartment

 Goel: I asked Mr. Niranjan about something he had shown when we met at Quality Meats [expensive 58th Street steakhouse - INequality Meats]

Goel: I told him I was going to hire a lawyer, I suggested he do the same. Goel's lawyer: Did you meet him in City Hall Park? Goel: I was talking my dog. Mr. Niranjan tapped me on the shoulder. Next I called his wife on Signal --

Goel's lawyer: Why did you call his wife and not him? Goel: I wanted to avoid any contact with him. It had been 2 weeks since the FBI told me he made $300,000

 Goel: I came to his apartment on June 5. He said it was a bad idea to talk. I told him, Be honest, tell them what you have done. Goel's lawyer: Did you ask him about 2018-18 chats? Goel: Yes. He told me about some algorithm he had to track call options

Goel's lawyer: What did Mr. Niranjan ask you about the messages? Goel: He asked if I had deleted them. I told him, No. Goel's lawyer: Did you ever do work for Goldman Sachs when you were out of the office? Goel: Yes. I worked 16 to 17 hours a day

 Goel's lawyer: Did you bring Goldman Sachs documents to your home? Goel: Yes.  Goel's lawyer: Why did you text Mr. Niranjan that you had booked the squash court? Goel: I think I wanted to play.

 OK- now insider trader defendant Goel is being crossed Assistant US Attorney: Mr. Goel, you told Mr Niranjan about things you wouldn't want your employer to know, right? Goel: Like what? AUSA: For example, using drugs.

Goel: Niranjan told me about pot in chocolate Goel: Mr Niranjan had carried pot, in chocolate... AUSA: The car ride to the ski trip, when was it?

Goel: March 31, and back the next day. AUSA: How long was the ride? Goel: Two to three hours. AUSA: You told Mr. Ford no one played music Goel: I was on calls

AUSA: Which transactions? Goel: One was about Sprint. About its capital structure. I was considered an expert in that. AUSA: You were talking about non-public information about Sprint, in a car with others? Goel: No sir.

 AUSA: You claim you panicked and said Delete on June 9? Goel: I did. AUSA: You've been working on that line for some time?

Goel's lawyer: Objection!

Judge Castel: Overruled. AUSA: You worked on it over the weekend? Or with Mr Niranthan on June 10 - let's see 10-T

 AUSA: Mr. Goel, do you ever watch detective shows on TV?

Goel's lawyer: Objection!

Judge Castel: Substained. AUSA: Look at this exhibit - you were in here when your lawyers questioned Agent Troiano, right? Goel: Yes.

 AUSA: How many times did you meet with Mr. Niranjan in the stairwell of 8 Spruce? Goel: We used to work out, run up and down the stairs.

Judge Castel: Jurors, we'll take our lunch break.... The witness sequestration rules apply. Threat will continue

 Now Assistant US Attorney closing argument against Brijesh Goel: AUSA: The defense was trying to distract you with theatrics. They didn't want you to focus on the pattern of insider trading. They say there were 8 trades. It's just not true. This is a straw man

 AUSA: What matters are the six stocks you actually heard testimony about. The defense has no burden but they're concocted a series of stories, as if this guy has the worst luck in the world - they break into his phone, he's overheard. It's distraction 

AUSA: There's no other source for the inside information - it's Goel. A conspiracy is just an agreement between two [or more] people to commit a crime.

 Judge Castel: Now we'll hear the defense summation. We may go a little bit over today.

 Goel's lawyer Reed Brodsky: Jurors, I saw that you were listening, that you saw Mr. Niranjan unravel on the witness stand. Brijesh Goel is not guilty. What happened here is a classic story of Mr. Niranjan stealing info, then betraying him

 Goel's lawyer: Niranjan lied to the government, and he lied on that witness stand. What Niranjan said is illogical. It didn't happen that way. (Shouting) - Mr. Goel said, 'I should not delete' ! That right there is reasonable doubt!

Goel's lawyer: It's like the case of Hurricane Carter -- AUSA: Objection! Judge Castel: Keep it to this case. Goel's lawyer: Snippets is not a case. Mr. Niranjan stole and lied.  Brijesh Goel is not guilty on every count.

On June 21, the rebuttal, legal instructions, deliberations and verdict: Guilty. Thread here:

OK - now US rebuttal, then legal charge, then deliberation - and verdict today? Jury entering!

Assistant US Attorney Sam Rothschild: Ladies and gentlemen, the simplest explanation is the best one. Why did Mr Niranjan trade on these six deals? Because his friend Mr. Goel, who got the information at Goldman Sachs, tipped him.

AUSA: The defendant was searching for a cover story. Innocent people don't huddle in stairwells, deleting messages.  If Mr Niranjan stole the info, why wasn't Goel asked about it by his lawyers? They don't want you to hear the answers. It's like a bad game of Clue

AUSA: We take our witnesses as we find them. Yes, Mr. Niranjan committed insider trading.  We're not asking you to be his friend. He was the defendant's friend. Now he's his punching bag. They trash Niranjan. But why was Goel whispering in the stairwell?

AUSA: Last week the defense told you this was like the Canadian wild fire smoke. But now it is clear - Britesh Goel is guilty. Judge Castel: Now the legal instructions [Thread will continue - including with any jury notes, and ultimate verdict - watch this feed]

 Legal charge is ongoing; during a break: Goel's lawyer: We object to any English-only transcripts going back into the jury room. Judge Castel: They've been admitted subject to my instruction. Please bring the jurors back in. Instructions continue

Legal instructions are over; now logistics from Judge Castel to the US v Goel jurors: Your verdict must be unanimous but do not surrender your conviction. Once you are in the jury room, you must select a foreperson. The verdict sheet includes each of the 6 counts

 Judge Castel: We will swear in the deputy Marshal [done] And we'll give him the thumb drive and the speaker, for the jury room. Jury retires to deliberate (and have lunch). Thread will continue with jury notes, and verdict, when it comes Watch this feed.

 OK - there's been a jury note. Judge Castel: The note is not signed, but it asks for a definition of "tender offer." I will provide one, directly from the jury instructions, and mark it Court Exhibit 8

VERDICT: Brijesh Goel is found GUILTY - sentencing set for October 19, 11 am

On October 18, 2023, Goel asked for a non custodial sentence. He listed volunteer activities, and said that "after my expected deportation... I want to open an education institute in India."

On October 25, the US Attorney's Office asked for a sentence "at the bottom of the 41 to 51 month Guidelines." Goldman Sachs asked for $393,000...

On November 1, Goel got 36 months, that is, three years: "BRIJESH GOEL, a former investment banker at Goldman Sachs, was sentenced to 36 months in prison for insider trading and obstruction of justice.  GOEL was previously convicted after a seven-day trial before U.S. District Judge P. Kevin Castel. He was ordered to forfeit $85,000 and a restitution in an amount to be determined at a future date to Goldman Sachs.  GOEL was also ordered to pay a $75,000 fine."

More on Substack here

 Earlier in the case, Brodsky said Goel "could not consent" to excluding time under the Speedy Trial Act. But then after conferring, he did not oppose. Time was excluded. 

On November 17, another conference was held, and Inner City Press was there. Brodsky said that the audio in the case is inaudible. Judge Castel said this came up before him recently - yes, in US versus former Honduras president Juan Orlando Hernandez, as Inner City Press reported. Brodsky said he might make a motion, unlike JOH's counsel Raymond Colon.

Brodsky had other motions, some of which Judge Castel asked why he had "sat on" until this conference. When the time came to set the trial date, Brodsky asked for October, but Judge Castel put it at June 12 with motions due before that.

On January 4, 2023 Goel filed a motion against the US Attorney's Office subpoenas before a trial date was set, citing US v. Tuzman, 15-cr-536. It includes an email from AUSA Joshua Naftalis, including that "trial subpoenas issued before the trial date was set... all these subpoenas have been withdrawn."

On March 16, 2023, in turnabout, the US Attorney's Office moved to quash Goel's subpoenas to Akshay Niranjan and Barclays - except, perhaps, Request 8 which "seemingly attempts to uncover evidence that Niranjan learned of the potential M&A transactions through his employment at Barclays, rather than from the defendant." But the US still calls that overbroad.

On April 27, Judge Castel held another proceeding in the case. Inner City Press was there. The defense did not want to provide its list of witnesses until closer to their use; the AUSA said fine, they too would delay. A resignation letter will be sought from Barclays.

On May 4, the US Attorney's Office wrote to Judge Castel that Barclays says it does not have such a letter (it believes Niranjan's resignation in 2022 was tendered orally). Counsel to Akshay Niranjan said the computer he used during 2017 to 2018 no longer works due to water damage.

Inner City Press will continue to cover the case - watch this site.

 The case is US v. Goel, 22-cr-396 (Castel) 


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