US prosecutors have charged Anthony Viggiano, a former Goldman Sachs employee, with securities fraud for allegedly providing confidential information about deals to friends via Xbox chat and other apps.
According to the Justice Department and the SEC, Viggiano passed along material nonpublic information regarding various deals while he was employed at Goldman Sachs and Blackstone. He reportedly used platforms such as Signal and Xbox audio chat to avoid detection by law enforcement. The trio is accused of profiting over $400,000 from trades based on this insider information.
Viggiano faces eight counts of securities fraud, each potentially resulting in a maximum sentence of 20 years in prison, along with one count of conspiracy, which could add up to five years. His friends, Christopher Salamone and Stephen Forlano, have also been charged; Salamone has pleaded guilty and is cooperating with prosecutors.
The indictment includes a recording of a phone conversation between Salamone and Viggiano that highlights their discussions about sharing insider information. In the recording, Salamone inquires if Viggiano is divulging information to Forlano, to which Viggiano responds with assurances that their communication methods are untraceable.
U.S. Attorney Damian Williams emphasized the determination of law enforcement, stating, “No matter how evasive insider traders’ conduct, or the lengths gone to hide their offenses, this Office will track down and prosecute those who attempt to cheat the system.”