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Accused Insider Trader Gave Ill-Gotten Gains To The Homeless

And for this he should do time?

Gautham Shankar, of New Canaan, Connecticut, who also worked as a trader at Schottenfeld Group LLC, is scheduled to be sentenced later today by U.S. District Judge Richard Sullivan in New York. Shankar, who faces as long as 25 years in prison, earned less than $450,000 in the insider-trading scheme, his lawyer said. Shankar, who worked on the sales desk at Goldman Sachs from July 2000 until February 2003, pleaded guilty to conspiracy and a count of securities fraud in October 2009. He admitted that while working at Schottenfeld, he passed and profited from illegal tips he obtained from Zvi Goffer, a former Galleon Group LLC employee, and Thomas Hardin, a former analyst at Lanexa Global Management.

“As the government learned during its meetings with Mr. Shankar, he has always, quite literally, given large sums of money away to the homeless on the streets of New York, including cash given to him by his co-conspirators for passing tips from Hardin,” his lawyer, Frederick Sosinsky, said in court papers.Helped People “From bringing the homeless a cup of coffee in the morning and sharing time with them to handing them hundreds of dollars at a time, Mr. Shankar has always been unable to simply walk past those in the most distress,” Sosinsky said.

Ex-Goldman Employee Seeks Leniency for Insider Scheme [Bloomberg]

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6 Responses to “Accused Insider Trader Gave Ill-Gotten Gains To The Homeless”

  1. Philanthropy Quant says:

    Yea I think someone took his invitation to a Robin Hood Foundation event a bit too literally.

  2. P. Falcone says:

    "Mr. Shankar has always been unable to simply walk past those in the most distress"

    Bullshit, the guy walked past me in the hall all the time when I was in meetings at Goldman. Plus, I heard he saw some UBS guys at the bar one night and breezed right on by.

  3. Mexi_Cant says:


    -Guy who got coffee and not "hundreds of dollars"

  4. Zoological Guy says:

    Unrelated question, if JPM ever got downgraded, would we get a post with pictures of cows AND a whale?

    Because I'd like that.

  5. WallStreet- Peace says:

    All – it seems like you are all perfect human beings and never committed a sin. Surprise I haven't see your name at the Nobel Peace Prize!

  6. TTTroll (cackling) says:

    The post title and text evince some understandable confusion by a non-lawyer. I'll try to clear that up.

    The prosecutor isn't seeking jail time because Shankar gave a small portion of insider-trading proceeds to homeless people. That would be quite odd and I can see why one would find it perplexing.

    Instead, the government is recommending jail time because Shankar committed securities fraud, which is illegal. And while most reasonable people would agree that buying cups of coffee for homeless people clearly negates any wrongdoing inherent in this case — I mean really, what's a paltry half-million dollar fraud between friends? — the government is full of jealous nobodies who enjoy imposing draconian punishments upon nice guys who are obviously just trying to help out and maybe got a little carried away by their generous nature and committed a teensy bit of fraud for completely understandable reasons.