copied from cftc website
August 30, 2013
Federal Court Orders Matthew Marshall Taylor to Pay $500,000 for Fraud for Fabricating and Concealing Trades from Goldman, Sachs & Co., His Former Employer, and Obstructing Their Discovery
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York entered a Final Judgment and Consent Order for Permanent Injunction against Matthew Marshall Taylor (Taylor) for defrauding Goldman, Sachs & Co. (Goldman), his former employer, in December 2007 by intentionally concealing from Goldman the true position size, as well as the risk and potential profits or losses (P&L) associated with the S&P 500 e-mini futures contracts (e-mini futures) position in a firm account traded by Taylor.
The Order finds that Taylor recorded multiple fabricated entries in a Manual Trade Entry System for e-mini futures trades that he never made in order to conceal and understate the true size of his e-mini futures position and risk in his trading account, as the fabricated sales functioned to offset portions of the Defendant’s actual e-mini futures purchases.
Further, the Order finds that Taylor violated the anti-fraud provisions of the Commodity Exchange Act (CEA) by concealing his position, risk and P&L from Goldman and requires Taylor to pay a $500,000 civil monetary penalty. Additionally, the Order imposes permanent trading and registration bans on Taylor and prohibits him from violating the CEA, as charged. Taylor resides in Florida.
The Court’s Order, dated August 28, 2013, stems from a CFTC Complaint filed on November 8, 2012, that charged Taylor with fraud for fabricating and concealing trades from his employer and obstructing their discovery (see CFTC Press Release 6409-12).
In a related criminal proceeding based on substantially the same facts, Taylor pleaded guilty in the U.S. District Court for the Southern District of New York to one count of wire fraud before the Honorable William H. Pauley III.
The CFTC thanks the Financial Industry Regulatory Authority for its assistance.
CFTC staff members responsible for this case are Janine Gargiulo, Trevor Kokal, Michael Geiser, Judith Slowly, David Acevedo, Lenel Hickson, Stephen Obie, and Vincent McGonagle.
Last Updated: August 30, 2013