A Goldman Sachs investment banker is under investigation for tipping off former Raj Rajaratnam’s former Galleon Group fund to pending healthcare deals.The New York Times’ Peter Lattman reports.
Federal agents are probing Matthew E. Korenberg, a San Francisco based banker, about two specific deals — the 2009 takeover of Advanced Medical Optics by Abbot Labs, and Med MedImmune’s acquisition of AstraZeneca in 2007.
According to the NY Times, Korenberg worked on the team that advised Advanced Medical Optics, and when the deal was announced, their share price jumped 150%.
Kronenberg is the third Goldman banker to become the subject of an investigation involving Raj Rajaratnam. The other two are David Loeb, a Goldman salesman, and Henry King, a technology stock analyst.
Both Goldman and the FBI declined requests for comment.