Federal prosecutors on Thursday accused a Goldman Sachs investment banker in San Francisco of insider trading, alleging that Woojae Jung used confidential information to trade in a dozen stocks over three years.
Prosecutors said he earned illicit profits of just over $130,000.
Mr. Jung, who is known as Steve, was arrested in San Francisco on Thursday. He was still an employee of the bank at the time of his arrest, a spokeswoman for the Manhattan United States attorney’s office said. Goldman is not named in court papers, but Mr. Jung’s LinkedIn profile describes his career there, and Goldman handled the mergers on which he is accused of trading.
“We are aware of the situation regarding Mr. Jung and are cooperating with legal authorities on the matter,” Michael Duvally, a spokesman for Goldman, said.
Mr. Jung was charged with six counts of securities fraud and one count of conspiracy to commit securities fraud. Prosecutors said that Mr. Jung — who the Securities and Exchange Comission said is a Korean citizen — made the trades in a brokerage account opened at Interactive Brokers in the name of a friend in South Korea. The friend is not named in the criminal case, but the S.E.C., which filed a civil action against Mr. Jung on Thursday, identified him as Sungrok Hwang of Seoul.
Neither Mr. Jung nor Mr. Hwang could be reached for comment. A spokeswoman for Interactive Brokers, an online brokerage firm, had no immediate comment.
As a vice president at Goldman, Mr. Jung specialized in technology, media and telecommunications deals, according to his LinkedIn profile. He is accused of trading in the shares of companies involved in deals that Goldman was working on, such as the 2015 acquisition by Western Digital of hardware company SanDisk.
The alleged trading lasted until last August, when representatives of the S.E.C. asked Goldman about which employees had access to confidential information about a number of deals, prosecutors said. The next month, according to the criminal complaint, Mr. Hwang called Interactive Brokers and said the account where the alleged trades were made had been set up using his stolen identity and that the money in it was not his.