Saturday, April 6, 2013

Ex-Goldman Sachs trader admits to massive Fraud

In late 2007, Goldman Sachs trader Matthew Taylor placed an $8.3 billion futures bet and hid it from his bosses. he hoped to receive a seven figure bonus and boost his reputation at the company. Now, he faces a possible long prison sentence.

In a Manhattan courtroom earlier this week Taylor pleaded guilty to a single count of wire fraud for concealing the trades, which cost Goldman $118.4 million to unwind. Prosecutors recommended a sentencing range of 2 to 3 years, based in part on Mr. Taylor's compensation for 2007-$150,000 in salary and an expected $1.6 million bonus-rather than the loss suffered by Goldman.

This latest plea comes as time is running out for prosecutors and regulators to bring actions related to the events that occurred in the months leading up to and during the economic downturn.

Matthew Taylor's case is the latest of many young trader whose career took a turn in the final months of 2007, just as the country was bracing for the economic crisis that followed. How long he will face behind bars is still not known. sentencing is due for July 26.

Susan Modaress, Press TV, New York