NEW YORK — A Goldman, Sachs & Co. executive has resigned because of allegations of involvement in the Securities and Exchange Commission's widening probe of insider trading, the New York investment banking firm said Tuesday.
David S. Brown, who had been a vice president in Goldman, Sachs' mortgage securities department, resigned July 3 after the SEC informed the firm that he was under investigation, Goldman, Sachs spokesman Edward G. Novotny said.
"We are shocked and dismayed at this development," Novotny said, reading a prepared statement over the telephone. He said that Brown, an attorney, had joined Goldman, Sachs three years ago and that the firm was cooperating in the SEC investigation, but he declined to elaborate.
Brown could not be reached for comment. His attorney, Michael Armstrong, at the New York law firm Barrett, Smith, Schapiro, Simon & Armstrong, declined to comment except to confirm that he represents Brown.