Former Richmond Fed bank examiner sentenced to 2 years in prison for insider trading

Robert Brian Thompson, a Chesterfield resident and former employee of the Federal Reserve Bank of Richmond, has been sentenced to 24 months in federal prison for engaging in insider trading while working as a bank examiner. This incident has raised questions about the appropriate punishment for first-time offenders like Thompson, particularly in light of his public sector employment and regulatory role. Thompson’s attorney, Megan Rahman, requested a reduced sentence of 15 months, highlighting his lack of a criminal record, cooperation with authorities, and willingness to return the profits from his illicit activities.

Assistant U.S. Attorney Thomas Garnett pointed out that Thompson’s actions spanned over 3.5 years and constituted a breach of trust with the public. Thompson’s scheme involved using confidential information acquired during his tenure at the Fed to make unauthorized trades in stocks of financial institutions he was responsible for overseeing. Among the institutions he traded illegally were Capital One and New York Community Bancorp. These actions led to charges against Thompson in November 2024, to which he pleaded guilty shortly after.

While acknowledging Thompson’s positive attributes, Garnett emphasized the severity of his crimes, which included dozens of illegal trades and deliberate efforts to conceal them from his employer. Thompson’s remorseful statement in court expressed regret for his actions and their consequences, acknowledging his role in undermining public trust in the Federal Reserve. Despite explanations about financial concerns stemming from his upbringing, Judge M. Hannah Lauck questioned Thompson’s motivations, pointing out the perceived extravagance of his current lifestyle.

Lauck’s sentencing decision reflected a balance between punishment and leniency, with a 24-month prison term deemed a reasonable outcome given the circumstances. Thompson has been granted a few more weeks of freedom before commencing his sentence at a federal prison in North Carolina. Lauck’s stern warning to Thompson highlighted the importance of self-reflection and accountability to prevent similar transgressions in the future. Thompson’s case serves as a cautionary tale about the consequences of greed and the erosion of trust in both financial institutions and government entities like the Federal Reserve System.