By Liz Moyer
The Commodity Futures Trading Commission charged a former trader
at Goldman Sachs Group Inc. (GS) with defrauding his employer by
intentionally concealing an $8.3 billion futures position that led
to a realized loss of $118.4 million.
Matthew Marshall Taylor was a trader at Goldman in 2007,
according to a filing with the Financial Industry Regulatory
Authority, the same time the CFTC alleges he entered fabricated
trades in e-mini futures by bypassing his firm's internal system
designed to enter and rout electronic trades to the Chicago
Mercantile Exchange.
The charges were filed in a civil complaint in U.S. District
Court for the Southern District of New York.
The CFTC alleges Mr. Taylor obstructed his employer's discovery
of the position by providing false, misleading or deceptive
information. A lawyer for Mr. Taylor couldn't immediately be
reached.
"Matt Taylor provided false explanations when confronted about
irregularities we detected in his account during the Dec. 14, 2007
trading day," a Goldman spokesman said in a statement. "He admitted
his misconduct following market close, and was promptly removed
from his job and terminated soon thereafter."
Mr. Taylor's Finra records say he was employed with Goldman from
March 2005 to January 2008 and he worked at Morgan Stanley (MS)
from March 2008 to August 2012.
Goldman said in the statement that it had enhanced its controls
since the incident, which didn't affect customer funds.
The CFTC said it is seeking monetary damages, trading and
registration bans and a permanent injunction.
Write to Liz Moyer at liz.moyer@dowjones.com
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