$362 Profit
In one case, on March 12, 2015, Jung learned about Murray Energy Corp.’s potential acquisition of a majority stake in Foresight Energy, the U.S. said. The next day, Jung’s alias brokerage account bought 400 shares of Foresight stock. On March 15, when the deal was announced publicly, Foresight Energy shares rose 12 percent. When the shares were sold five days later, Jung allegedly reaped a profit of $362.
According to the complaint, Jung initially appeared to comply with Goldman Sachs’s internal policies by closing his Interactive Brokers LLC account when he started working at the bank and opening a bank-approved account at Fidelity Brokerage Services LLC instead. That allowed Goldman Sachs to keep track of Jung’s trading to ensure it wasn’t improper, the U.S. said.
But Jung secretly opened a new Interactive Brokers account under the name of a school friend in South Korea, the U.S. said.
‘Electronic Fingerprints’
Jung "left his electronic fingertips” on that account, accessing it more than 600 times and using it to make illegal trades, the U.S. said. The access logs for the account led to three of Jung’s Internet subscriber IP addresses, according to the suit.
Finally, in July 2016, an attempt was made to transfer $5,600 out of the account, according to the suit. Interactive Brokers rejected the request as improper, leading to a phone call from someone claiming to be the South Korean friend, the U.S. said. The call was placed from a mobile phone registered to Jung, according to the suit.
This article was provided by Bloomberg News.