Related Federal Cases
- Sark Wire Corporation, PPP Loan Fraud, New York 2023 · Ohio
- Sark Wire Corporation, PPP Loan Fraud, New York 2020 · New York
- Mark Thompson, Wire Fraud and Conspiracy, New York NY, 2023 · New York
- Christopher Ferguson, Securities Fraud, New York 2020 · Ohio
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
Former Goldman Sachs Vice President Pleads Guilty to Wire Fraud
In a shocking turn of events, Matthew Taylor, a former vice president at Goldman Sachs, pleaded guilty to wire fraud in connection with a scheme to accumulate and conceal an unauthorized trading position in an account that he managed at Goldman Sachs. The scheme, which took place in 2007, resulted in Taylor amassing a position that far exceeded all trading and risk limits set by Goldman Sachs.
According to the Information filed in Manhattan federal court, Taylor was a member of the Capital Structure Franchise Trading desk and was responsible for a trading account called the CSFT Equity Volatility Portfolio. He traded in Standard & Poor’s E-mini futures contracts using an electronic trading platform called Globex.
In November 2007, Taylor had lost a significant portion of the profits that he had accumulated in the Trading Account earlier that year. As a result, he was instructed by his supervisors to reduce the overall risk in the Trading Account. However, on December 13, 2007, Taylor significantly increased the notional value of his long position in S&P E-mini futures by entering a series of electronic trades through Globex.
Taylor actively concealed this position from others at Goldman Sachs by recording multiple false entries for S&P E-mini futures trades that he never made in a manual trade entry system. He also prepared a false profit and loss report for the Trading Account that served to conceal his actual oversized position and market risk.
As a result of his scheme, Taylor faces a maximum sentence of 20 years in prison. The defendant is currently awaiting sentencing. The case is a stark reminder of the importance of adhering to trading and risk limits, and the consequences of failing to do so.
The United States Attorney for the Southern District of New York, Preet Bharara, stated that Taylor’s actions were a clear violation of the trust placed in him by Goldman Sachs. The Assistant Director-in-Charge of the New York Field Office of the FBI, George Venizelos, added that the FBI will continue to work tirelessly to uncover and prosecute cases of wire fraud and other financial crimes.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News