SEC Ends Insider Trading Probe Into Former Goldman Sachs Banker Matthew Korenberg

A long-running insider-trading investigation by the U.S. Securities and Exchange Commission (SEC) into former Goldman Sachs banker Matthew Korenberg was finally terminated. The SEC officially deauthorized Korenberg as a lawsuit target after a nearly five-year investigation. The SEC had been investigating whether Korenberg passed inside information about impending health care company acquisitions to a hedge-fund manager in the now defunct Galleon Group.

"We are grateful for the SEC's willingness to consider the other side of the story before filing a case," said John Hueston, lead attorney for Korenberg. "Although Mr. Korenberg has suffered unnecessarily from public disclosure of an investigation that should have been terminated long ago, the SEC should be commended for stepping back and repeatedly considering defense evidence before properly arriving at a decision to terminate this probe."

"Too often cases are filed and reputations are ruined before mistakes of fact and judgment are realized; here, Mr. Korenberg, who did nothing wrong, will now be able to resume a normal life," said Hueston.

Hueston also previously closed down a parallel federal criminal investigation into Korenberg.