A former Goldman Sachs Group Inc. vice president who goes on trial for insider trading in June is scrambling to pay for his legal defense after he was cut off by the bank’s insurers.
Brijesh Goel, who has pleaded not guilty to providing inside information about Goldman deals to a squash buddy, sued AIG on Monday in New York state court over its decision to stop covering legal bills that have already totaled at least $5 million.
According to Goel’s suit, AIG advanced him $1 million for his defense under Goldman’s directors and officers liability policy but stopped covering his costs earlier this year. On March 1, an adjuster informed Goel’s lawyers that their client did not qualify as an “affiliate insured” under the policy, the suit claims.
Source: Ex-Goldman Banker Has Legal Fees Cut Off Ahead of Insider Trial – Bloomberg
