Five Goldman Sachs Group Inc. executives sold stock worth $65.4 million after the company received notice of possible fraud charges from the government, the Wall Street Journal reported.
Goldman received a notice from the Securities & Exchange Commission in July and disclosed it only later, saying it didn’t consider such a notice as material information for investors, the Journal said. The stock fell 13 percent on April 16 after the U.S. Securities and Exchange Commission filed civil fraud charges against Goldman in a case involving the sale of collateralized debt obligations.
It isn’t clear if the sales would draw scrutiny under insider-trading laws, the Journal said. An unidentified Goldman spokesman declined to comment and said the executives weren’t available to comment, according to the Journal.
Board member John Bryan, Co-General Counsel Esta Stecher, Principal Accounting Officer Sarah Smith, and Vice Chairmen Michael Evans and Michael Sherwood sold stock between October 2009 and February 2010, the newspaper said. That was the most active period of insider selling in three years at Goldman, the Journal said, citing InsiderScore.com.
Smith declined to comment and the others weren’t reachable at their offices, the Journal said.