Ex-Richmond Fed worker facing sentencing this week for insider trading scheme
A long-time Federal Reserve Bank of Richmond employee is awaiting sentencing this week for his involvement in an insider trading scheme that lasted nearly four years. Robert Brian Thompson, 44, is scheduled to appear in court before U.S. District Court Judge M. Hannah Lauck for insider trading and making false statements to conceal his illegal trades.
Thompson, a Chesterfield resident, has recommended a maximum sentence of 15 months, while federal prosecutors are seeking a 30-37 month prison term. The former Fed employee was charged by the U.S. Attorney’s Office in November 2024 and subsequently pleaded guilty to using confidential information obtained during his role as a bank examiner to conduct 69 trades involving tens of thousands of shares in over seven publicly traded financial institutions. This unlawful activity occurred between October 2020 and February 2024, resulting in a personal profit of $771,000 that will need to be forfeited upon conviction.
Having worked at the Fed since 2004 and overseeing regulation for 18 major financial institutions with assets exceeding $100 billion, Thompson abused his position by trading stocks of companies under his examination. Notable trades included those of Capital One and New York Community Bancorp, which Thompson manipulated using non-public information from internal emails within the Fed.
For the Capital One transactions, Thompson capitalised on confidential Fed emails revealing undisclosed earnings that exceeded market forecasts. Preemptively purchasing 7,500 Capital One shares shortly before the public earnings release, Thompson profited $79,000 from a 9% stock jump after selling his shares the following day. On a separate occasion involving NYCB trades, Thompson’s use of secret Fed information regarding the bank’s anticipated losses from specific loans led to a 3,745% return on investment after purchasing options in NYCB shares and profiting from their subsequent fall.
Federal regulations explicitly forbid employees like Thompson from trading bank securities and require the regular disclosure of financial holdings, a requirement Thompson circumvented through false declarations on his documentation. Despite professing his intention for financial stability for his children, Thompson’s actions violated ethical standards, acknowledging these choices led to personal and familial repercussions.
As Thompson prepares for sentencing, his defense highlights his remorse, cooperation with the investigation, and lack of criminal history. Acknowledging the severity of his actions, Thompson expressed regret to his former colleagues and the institution he betrayed. Addressing the Federal Reserve System, especially Richmond Fed President Thomas Barkin, Thompson apologised for the damage he caused and the implications of his misconduct.
Thompson’s story serves as a cautionary tale, underscoring the consequences of greed and ethical misconduct in a professional setting. Despite personal struggles and job-related pressures, his actions reinforce the importance of upholding integrity and abiding by legal and ethical standards in the financial sector. Thompson’s impending sentencing marks the resolution of a prolonged investigation into his deceptive practices and serves as a stark reminder of the legal ramifications of insider trading.
