Senior Fed Official Faces 25 Years in Prison for Insider Trading Scheme, Profits $770,000

A former bank examiner and senior manager at the Federal Reserve Bank of Richmond (FRBR) is in hot water for engaging in insider trading. The U.S. Justice Department (DOJ) has revealed that ex-FRBR senior official Robert Brian Thompson has pleaded guilty to insider trading and making false statements.

Thompson reportedly used confidential supervisory information to conduct 69 trades involving stocks of seven undisclosed financial institutions, raking in personal profits of $771,678. To cover his tracks, Thompson falsified his Form D, claiming he had no equity in any publicly listed financial institution and had not violated any laws or FRBR policies.

The DOJ disclosed that Thompson’s fraudulent activities took place between October 2020 and February 2024. As a result, Thompson is facing a potential 20-year jail term for insider trading and an additional five years for falsifying information on his Form D. His sentencing is scheduled for March 19th, 2025.

It’s a cautionary tale that highlights the importance of ethical conduct and transparency in the financial sector. Insider trading is illegal for a reason, and individuals who abuse their positions for personal gain face severe consequences. Let’s all strive to uphold the integrity of the financial markets to ensure a fair and level playing field for everyone involved.