In a recent ruling, a former vice president of Goldman Sachs Group Inc., who was sentenced to three years in prison for insider trading, has been ordered to also pay the bank over $390,000 in legal fees.
Brijesh Goel, the individual in question, was directed to pay this sum by a federal judge in New York this Wednesday. The amount represents the legal expenses Goldman Sachs endured while aiding investigations into Goel’s illicit activities. The investigations were carried out by the Manhattan US attorney’s office and the Securities and Exchange Commission. Goldman Sachs sought the legal expertise of Milbank LLP to manage this case.
In his defense, Goel contended that the restitution request made by Goldman Sachs should be reduced approximately to $120,000, arguing that he should be held liable only for a portion of the costs. This claim was, however, refuted by the federal judge’s final ruling.
Goel’s insider trading scandal is a stark reminder for corporations and legal professionals about the severe financial and legal repercussions such activities can incur, not only for the suspects, but also for the firms involved.
For more details on the matter, visit the original report by Bloomberg Law here.