7 months ago
Ex-Lazard Banker Accused of $41M Insider Trading Scheme
A former banker named Justin Kim is accused of giving secret information about big healthcare deals to his friends.
These friends used the information to make a lot of money by buying and selling stocks at the right times.
The deals were worth billions of dollars, and the friends made about $41 million illegally.
Kim is facing serious charges and could go to prison for up to 25 years.
He worked at Lazard, a big investment bank, and later at Citigroup.
The friends also did other bad things, like pretending to be doctors and making fake news to trick people into buying stocks.
The bankers and the friends are in big trouble, and the authorities are investigating.
Justin Kim, a former Lazard banker, is accused of feeding insider tips to a friend's trading network.
The scheme allegedly generated $41 million in illicit profits from 10 healthcare deals.
Key deals involved included Gilead Sciences' acquisition of Immunomedics, CVS Health's buyout of Oak Street Health, and AbbVie's purchase of ImmunoGen.
Kim is facing criminal and regulatory charges, with potential prison time of up to 25 years.
Lazard and Citigroup have distanced themselves from Kim's actions, stating they do not tolerate such conduct.
- Who
- Justin Kim, a former Lazard banker, and Muhammad Saad Shoukat and his brothers
- What
- Alleged insider trading scheme involving tips on healthcare deals
- Where
- United States, with arrests in San Francisco and Newark, New Jersey
- When
- Over several years through 2023
- Why
- To generate illicit profits from well-timed bets ahead of takeovers
Key facts
- Accused Individual
- Justin Kim
- Alleged Profits
- $41 million
- Rolex Watch
- Received by Kim
- Deals Involved
- 10 potential takeovers
- Key Deals
- Gilead Sciences, CVS Health, AbbVie
- Total Deal Value
- $60 billion
- Arrest Location
- San Francisco
- Bail Amount
- $100,000
Quotes
Justin Kim
Former Lazard Ltd. dealmaker accused of insider trading
“Get ready bro. S—— is about to pop off.”
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Stefanie Roddy
Federal Bureau of Investigation's special agent in charge in Newark, New Jersey
“Shoukat and his co-conspirators benefited greatly from their years-long scheme, and cheated the system to reap their rewards.”
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Lazard spokesperson
Spokesperson for Lazard Ltd.
“We have zero tolerance for conduct that does not adhere to our standards. The allegations against this junior banker, who has not been employed by the firm since 2023, are brazenly criminal and a clear violation of our policies, and we are fully cooperating with authorities.”
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Citigroup spokesperson
Spokesperson for Citigroup Inc.
“Mr. Kim is no longer with Citi, and we understand that the conduct charged in the complaint pertains to activity at a prior employer of Mr. Kim and not Citi.”
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Muhammad Arham Shoukat
Brother of Muhammad Saad Shoukat, accused of insider trading and other fraudulent activities
“kick him out or jump him and kick his a— how hard is it to find his addy in santa monica?”
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