By Sam Tobin
LONDON (Reuters) – A former Goldman Sachs analyst used confidential information to make more than 140,000 pounds ($176,800) from shares in listed companies, prosecutors told a London court on Thursday.
Mohammed Zina, 35, who was employed by Goldman Sachs International in its conflicts resolution group in London, is accused of six offences of insider dealing relating to shares in six companies, including Arm Holdings and Punch Taverns.
Zina is standing trial at Southwark Crown Court alongside his brother Suhail Zina, 36, who was a lawyer at law firm Clifford Chance and is accused of letting his sibling use a trading account in his name to buy and sell shares between July 2016 and December 2017.
The pair are also charged with three counts of fraud relating to loans obtained from Tesco Bank, which prosecutors say were used to buy the shares but which they said were to be for home improvements.
Both Mohammed and Suhail Zina have pleaded not guilty to all nine charges. They no longer work for either Goldman Sachs or Clifford Chance.
Prosecutor Peter Carter said the brothers “used information which they should not have used – because it was private, confidential, price-sensitive information – to gamble effectively, to invest on the stock exchange”.
He told the jury that Goldman Sachs’ internal policies strictly forbid any use of confidential information acquired by the investment bank or its employees.
“To breach a confidence or to use confidential information improperly or carelessly would be unthinkable,” the policy says.
Carter said the policy was clear that employees are not allowed to use confidential information “other than for your work at (Goldman Sachs) and nothing else”.
But, he added “that is precisely what Mohammed Zina did” with the assistance of his brother.
The ongoing trial is expected to conclude in February.
(Reporting by Sam Tobin; Editing by Bill Berkrot)
