Ex-Goldman analyst on trial denies knowingly possessing inside information

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A former Goldman Sachs analyst accused of insider trading with his brother, an ex-Clifford Chance lawyer, claims that he neither knew nor believed that he was in possession of inside information, according to his defence at a London trial.

Mohammed Zina “was not aware that he was on any insider list or that he was an insider at all” when he was working for the London office of the elite Wall Street bank, Brendan Kelly KC told the jury at Southwark Crown Court on Wednesday.

Zina, 35, and his brother Suhail Zina, 36, are on trial accused of insider dealing in six stocks between July 2016 and December 2017, and three counts of fraud in relation to loans they obtained from Tesco Bank.

The alleged insider trading in question carries a maximum penalty of seven years in prison, while fraud carries a maximum sentence of 10 years.

The jury was told that Mohammed Zina was never made aware he was on an insider list during his time at Goldman. He formerly worked for the bank’s London conflict resolution group.

In a case brought by the UK’s financial watchdog, it is alleged that Mohammed Zina used three bank accounts for trading based on inside information. One of the accounts was opened in his brother Suhail’s name, and the other two in the name of their sister, Shenaz Chunara.

Peter Carter KC, acting for the Financial Conduct Authority, has already told the jury that the brothers made profits in the region of £140,000 from their trading in stocks including semiconductor designer Arm.

Suhail Zina — who was a trainee solicitor at Clifford Chance, the “magic circle” law firm, before moving into its property finance department after qualification — denies assisting his brother to trade in the ways alleged by the prosecution. 

His defence barrister, Allison Clare KC, told the jury he was not aware that his brother had access to alleged inside information as part of his role at Goldman. The jury heard that he denies ever being involved in, or assisting in, any fraud regarding the Tesco loan.

The jury on Wednesday was shown screenshots of email correspondence between Mohammed Zina and Goldman bankers, which included information on each of the stocks in question, before the trades were made.

Fergal O’Driscoll, head of Emea conflicts and reputational risk at Goldman, worked alongside Mohammed Zina during his time at the Wall Street bank and gave evidence on Tuesday. O’Driscoll told the court that members of their team had access to large quantities of confidential, potentially price-sensitive information.

The trial, which is expected to last three months, continues.