Senior Federal Reserve Official Accused of Insider Trading Scheme, Potential 25-Year Prison Sentence

An ex-bank examiner and senior manager at the Federal Reserve Bank of Richmond (FRBR) may be looking at some serious time in jail for using confidential information to trade shares of US banks. The U.S. Justice Department (DOJ) reported that former FRBR senior official Robert Brian Thompson has admitted to one count of insider trading and one count of making false statements.

According to the DOJ, Thompson allegedly abused his position and used confidential supervisory information to make 69 trades involving stocks of seven undisclosed financial institutions. This resulted in personal profits reaching $771,678. To cover his tracks, Thompson reportedly made false entries on his Form D, indicating that he had no equity in any publicly listed financial institution and that he had not violated any laws or FRBR policies.

The DOJ revealed that this fraudulent behavior took place between October 2020 and February 2024. Thompson is facing potential jail time of up to 20 years for insider trading and 5 years for making false statements on his Form D. He is scheduled for sentencing on March 19th, 2025.

It’s a stark reminder of the consequences of insider trading and the importance of upholding ethical standards in the financial sector. Thompson’s case serves as a cautionary tale for those tempted to misuse privileged information for personal gain. Stay tuned for updates on this developing story.