Goldman Sachs Trader Accused of Illegally Hiding $8.3 Billion Position
November 11, 2012Source: Charles Kennedy, Oilprice.com
Goldman Sachs will seek $130,000, or triple the monetary value that Taylor gained (whichever is larger), for every violation he is found to have committed.
Back in 2007 Taylor created false trades and hid his position from his employers, including the risk, profits, and losses that he was working with. He had managed to bypass internal systems for trading on the Chicago Mercantile Exchange, and manually entered the false trades into the system.
Michael DuVally, a spokesman for Goldman Sachs, said that “Matt Taylor provided false explanations when confronted about irregularities we detected in his account during the Dec. 14, 2007, trading day. He admitted his misconduct following the market close, and was promptly removed from his job and terminated soon thereafter.”
“Taylor’s scheme culminated in his concealment of a notional value of an approximately $8.3 billion long e-mini futures position (future contracts tied to the S&P 500 Index).”
“Since these events, which had no impact on customer funds, we have further enhanced our controls.”
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