NEW YORK (REUTERS) - Ex-Goldman Sachs Group trader Matthew Marshall Taylor has turned himself in to the federal authorities in connection with charges that he defrauded the Wall Street bank out of US$118 million (S$146 million) in 2007.
Taylor voluntarily turned himself in to agents of the Federal Bureau of Investigation in New York on Wednesday morning.
The Commodities Futures Trading Commission (CFTC) filed a lawsuit against Taylor in November, accusing him of fabricating trades to conceal an US$8.3 billion futures position. The CFTC sought US$130,000 in civil penalties.
Goldman itself paid US$1.5 million last year to settle charges that it failed to appropriately supervise Taylor. The bank has since put in place procedures to catch wayward trading activity more quickly.
According to charges outlined against him, Taylor established his futures position in e-mini Standard & Poor's futures contracts on Dec 13, 2007. The next day, it was flagged by Goldman's controls. By the time the trade had been unwound, it had caused US$118 million in losses.
After leaving Goldman Sachs, Taylor moved on to a position at Morgan Stanley in March 2008. He left that bank in July of last year.