A former Goldman Sachs trader who pleaded guilty in a criminal case earlier this year to fabricating huge positions to protect his bonus agreed on Friday to pay a $500,000 fine in a related civil matter.
The New York Times reports that The Commodity Futures Trading Commission said Friday that Judge Richard J. Sullivan of Federal District Court in Manhattan approved the civil penalty against the former trader, Matthew M. Taylor.
As part of a consent order, Taylor was also barred from trading commodities.
In November 2012, the regulatory agency accused Taylor, who traded equity derivatives products in New York, of hiding an $8.3bn position he had taken in electronic futures contracts tied to the Standard & Poor’s 500-stock index.
Though his superiors had ordered him to reduce the risk on his trading book, he instead ratcheted up the position.
In the meantime, South China Morning Post reports that a former trader at the Royal Bank of Scotland who created false records to hide losses of more than US$25.79m million cited the notorious Nick Leeson case in her plea for leniency Friday.
Shirlina Tsang Pui-yu, 42, who earlier pleaded guilty to one count of fraud, said her offence was much less serious than the Leeson scandal.
image: © Lisamarie Babik