Former Goldman Sachs Group trader Matthew Taylor was sentenced to nine months in prison for concealing an unauthorized $8.3bn trading position in 2007 that caused the bank to lose $118m.
Bloomberg News reports that U.S. District Judge William H. Pauley in Manhattan ordered Taylor, 34, to repay the full amount of the loss to Goldman Sachs, concluding the New York-based bank is a victim of his crimes and is therefore entitled to the restitution.
The judge criticized prosecutors for waiting more than five years to file charges and chastised Goldman Sachs for failing to alert rival Morgan Stanley of Taylor’s actions after the trader went to work there.
Pauley also accused prosecutors of minimizing the size of the losses to the bank in a plea agreement, so Taylor could face a reduced term under federal sentencing guidelines. The agreement calculated the loss at $2.5 million, including the money Taylor earned from the bank.
Hit the link below to access the complete Bloomberg article: