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3 Years : From Mar 2012 to Mar 2015
By Liz Moyer
The Commodity Futures Trading Commission charged a former trader at Goldman Sachs Group Inc. (GS) with defrauding his employer by intentionally concealing an $8.3 billion futures position that led to a realized loss of $118.4 million.
Matthew Marshall Taylor was a trader at Goldman in 2007, according to a filing with the Financial Industry Regulatory Authority, the same time the CFTC alleges he entered fabricated trades in e-mini futures by bypassing his firm's internal system designed to enter and rout electronic trades to the Chicago Mercantile Exchange.
The charges were filed in a civil complaint in U.S. District Court for the Southern District of New York.
The CFTC alleges Mr. Taylor obstructed his employer's discovery of the position by providing false, misleading or deceptive information. A lawyer for Mr. Taylor couldn't immediately be reached.
"Matt Taylor provided false explanations when confronted about irregularities we detected in his account during the Dec. 14, 2007 trading day," a Goldman spokesman said in a statement. "He admitted his misconduct following market close, and was promptly removed from his job and terminated soon thereafter."
Mr. Taylor's Finra records say he was employed with Goldman from March 2005 to January 2008 and he worked at Morgan Stanley (MS) from March 2008 to August 2012.
Goldman said in the statement that it had enhanced its controls since the incident, which didn't affect customer funds.
The CFTC said it is seeking monetary damages, trading and registration bans and a permanent injunction.
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