A former high-ranking Federal Reserve official is facing a long prison sentence for using confidential information to make a fortune in the stock market.
Guilty Plea and Charges
Robert Brian Thompson, a senior manager at the Federal Reserve Bank of Richmond, pleaded guilty to insider trading and making false statements. The Department of Justice (DOJ) says he used sensitive information from his job to make 69 trades in the stocks of seven unnamed banks.
The Scheme
Thompson’s illegal trading activities, which spanned from October 2020 to February 2024, raked in a cool $771,678. To cover his tracks, he lied on official forms, claiming he didn’t own any bank stocks and hadn’t violated any rules. These forms require Fed employees to disclose any holdings in banks regulated by the Federal Reserve.
The Consequences
Thompson’s actions could land him in prison for up to 25 years (20 years for insider trading and 5 years for the false statements). His sentencing is scheduled for March 19, 2025.
