Indian American Puneet Dikshit gets 24 months jail for insider trading

Dikshit was a lead McKinsey partner advising Goldman Sachs on Its acquisition of financial technology company GreenSky

Puneet Dikshit, a former Indian American McKinsey partner advising Goldman Sachs on Its acquisition of financial technology company GreenSky, has been sentenced to 24 months in prison by for an insider trading scheme.

Dikshit, 41, who pled guilty on Dec 15, 2021, to one count of securities fraud in connection with his insider trading scheme, was sentenced April 6 by US District Judge Colleen McMahon, according to a press release from the US Attorney for the Southern District of New York.

In addition to his prison sentence, Dikshit, a New York resident, was ordered to pay forfeiture of $455,017.

Read: Seven Indian Americans charged in $1 million insider trading ring (March 30, 2022)

“With today’s sentence, Puneet Dikshit must face the consequences of his egregious crime,” US Attorney Damian Williams said. “We will continue to vigorously protect the integrity of our capital markets and hold accountable those who cheat by trading on inside information.”

“This conviction shows Wall Street and Main Street that corporate advisors who steal information entrusted to them and use it for their personal gain will be caught and prosecuted.”

According to court documents, Goldman Sachs Group, Inc engaged regarding its acquisition and post-acquisition integration of GreenSky, a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes, between Nov 2019 and July 2020, and again between April 2021 and Sep 2021.

As one of the McKinsey partners leading these engagements with Goldman Sachs, Dikshit had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to Goldman Sachs and McKinsey, used to trade GreenSky call options.

Dikshit allegedly engaged in this trading between July 26 and Sep 15, 2021 – at the same time he was leading the McKinsey team that was advising Goldman Sachs about its potential acquisition of GreenSky.

At various times between July 26 and Sep 13, 2021, Dikshit purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase.

Read: Former Mckinsey Partner Sentenced To 24 Months In Prison For Insider Trading Scheme (April 6, 2022)

However, in the two days before the Sep 15, 2021, public announcement that Goldman Sachs would be acquiring GreenSky, Dikshit sold all of these longer-dated GreenSky call options, the release said.

He then purchased about 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on Sep 17, 2021. After the deal to purchase GreenSky was announced on Sep 15, 2021, Dikshit sold these options and realized profits of approximately $450,000.

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