In an unrelated case one settlement has already been reached with a professional baseball player who cashed in and is paying $2.5 million to settle the SEC inquiry. Money was just paid without any comments as far as guilt or innocence on that one.
Matthew Korenberg, is a San Francisco-based managing director for Goldman and federal prosecutors in LA are working the case where the insider trading deal goes back to 2009. So far nobody has been charged. Connected again is the Galleon Group founder Raj Rajaratnam. BD
LOS ANGELES — Prosecutors probing insider trading in the medical devices industry are investigating a senior Goldman Sachs banker and a former employee of the notorious hedge fund Galleon Group.
The investigation, according to a person briefed on the matter, is focused on the 2009 takeover of Advanced Medical Optics in Santa Ana, Calif.
The U.S. attorney’s office in Los Angeles has been scrutinizing the ties between Goldman managing partner Matthew Korenberg, who worked on the Advanced Medical Optics deal, and Paul Yook, a former portfolio manager at Galleon, the person said.
Korenberg’s attorney, John Hueston of Irell & Manella, said the San Francisco-based banker had done nothing wrong. Yook couldn’t be reached for comment.
The investigation of Abbott Laboratories’ takeover of Advanced Medical Optics is part of a broader inquiry of mergers and acquisitions in the medical devices industry, according to the person briefed on the matter, who was not authorized to discuss the case publicly and spoke on condition of anonymity.