Ex Merrill Lynch energy trader Daniel Gordon is allegedly the perpetrator of a $43m trading scam, said to have been undertaken whilst he was working at the firm. The case is thought to be the largest-ever employee theft allegation involving a financial institution. Gordon left Merrill after his unit was sold to Allegheny Energy and became a senior trader at that company. He has also been accused of defrauding Allegheny of $2.5m. Gordon went to ground when the allegations surfaced a couple of months back. Now, according to Bloomberg, he may be soon forced out into the spotlight.
Gordon, 27, has protested his innocence through third parties, but has not been seen in public for some time and has kept himself out of reach of the media. The case came to light earlier this year when Canadian prosecutors made the allegation that Gordon had defrauded Merrill. The firm is said to have found out about the fraud around 18 months after it had allegedly been carried out.
Now, according to the news agency, some of the dosh has been found in a bank account in Switzerland and it is believed that Gordon will soon be charged with money laundering. The details of this case remain somewhat sketchy. The alleged frauds are complicated and Gordon's low profile has served only to seemingly cloak the affair in secrecy. Merrill Lynch has kept very quiet. Some further light will now be shed on the affair should Gordon be charged as expected.