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Robert Freeman
Convicted Insider Trader; Former Head of Arbitrage at Goldman Sachs
Head of Risk Arbitrage, Goldman Sachs & Co.
Overview
Robert Freeman was the head of Goldman Sachs' risk arbitrage department who pleaded guilty to insider trading in August 1989. Freeman traded on material nonpublic information about pending block trades and corporate transactions, most notably related to the Beatrice Companies leveraged buyout. His conviction was the only insider trading case that directly reached Goldman Sachs during the 1980s scandals. He was sentenced to four months in federal prison and fined $1.1 million. His case demonstrated that the insider trading corruption extended to the very highest echelons of Wall Street's most prestigious firms.
Key Affiliations
Controversies & Concerns
Traded on inside information about Beatrice Companies leveraged buyout and other pending transactions
Only insider trading conviction to directly reach Goldman Sachs during the 1980s scandals
His arrest damaged Goldman Sachs' reputation at the height of the insider trading prosecutions
Related Investigations (1)
Criminal Charges & Violations
1 documented violations
18 U.S.C. 1341 (Mail Fraud)Insider trading on advance knowledge of Beatrice Companies LBO and other block trades(Federal)
Known Associates & Connections
Ivan Boesky
Part of the broader 1980s insider trading network
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Born
- 1942
- Birthplace
- United States
Education
- •Dartmouth College
- •Columbia Business School (MBA)
Key Timeline
April 1987
Arrested at Goldman Sachs offices by federal agents
August 1989
Pleads guilty to one count of mail fraud related to insider trading
1990
Sentenced to 4 months in federal prison; fined $1.1 million