Ex-Goldman trader to pay $500,000 fine in fraud case
August 31, 2013 - 7:59:50 am
NEW YORK CITY: A US court ordered a former Goldman Sachs trader to pay $500,000 for fraud for fabricating and concealing $8.3 million in trades from his former employer, officials said Friday.
Matthew Marshall Taylor must pay the fine and will be permanently barred from trading and registering securities under the US court order, said the US Commodities Futures Trading Commission (CFTC).
The order found that Taylor in December 2007 defrauded Goldman Sachs by intentionally concealing and misrepresenting his investments in a Goldman futures account.
Taylor "recorded multiple fabricated entries" of trades he had not made in order to understate the size of the position and mislead Goldman on the true risk of the account. The fabricated trades "functioned to offset" actual purchases, the CFTC said.
Goldman ended up losing $118.4 million on the account, according to the CFTC.
In December, the CFTC ordered Goldman to pay $1.5 million to settle CFTC charges that it failed to diligently supervise employees related to the incident.
Taylor has also pleaded guilty to a count of wire fraud in a parallel criminal case.
Taylor is scheduled to be sentenced in October. (AFP)