An ex-employee of the Federal Reserve Bank of New York suspected of leaking confidential information to a former colleague working at Goldman Sachs Group Inc pleaded guilty to a federal charge on Wednesday.
Advertisement
“Gross, 37, of Bellmore, New York, pled guilty to one count of theft of government property”, the US Attorney’s Office said on Wednesday.
Federal prosecutors, in announcing his guilty plea, said that on August 10, 2014, the investment-banking contact sent a text message asking Mr. Gross to send certain confidential documents to his personal email account.
“I have learned from it and would like to move forward”, Bansal told U.S. Magistrate Judge Gabriel W. Gorenstein, who set sentencing for March 9, when the 30-year-old Bansal could face up to a year behind bars.
“He’s a relatively young man who obviously made an error that caught the attention of… the USA attorney’s office”, Barket said. Last week, Goldman paid $50 million to settle the case with New York state regulators.
Sean Casey, a lawyer for Mr. Bansal, declined to comment. Bansal obtained about 35 documents on approximately 20 occasions from Gross, according to a settlement last week between Goldman Sachs and the New York Department of Financial Services. It said he would then relay those emails to his Goldman work email. The bank admitted it failed to properly supervise the employee who received the confidential Fed information.
Prosecutors said the documents Gross shared with Goldman Sachs were used to assist it with client banks. The New York Fed also fired Gross. Separately, the firm said it has tightened its policies around hiring from government institutions and “implemented changes to make them appropriately robust”. The New York Fed said in a statement in November that it has “zero tolerance” for employees who don’t safeguard confidential information.
“My criticism with Washington is they engage in crony capitalism”, Cruz said in the interview.
Advertisement
The scheme was reported by one of Goldman’s partners.
