A former Goldman Sachs trader pleaded guilty to wire fraud yesterday, admitting that he caused his company to lose US$118 million ($140 million) in 2007 when he put US$8 billion at risk.
Matthew Marshall Taylor, 34, said he took the position on a futures contract traded electronically through the Chicago Mercantile Exchange in December 2007 to enhance his reputation and boost his earnings in a year when he made US$150,000 in salary and US$1.6 million in bonuses.
Taylor entered fictitious information in trading account records and lied to company representatives to cover up the fact that he had put 10 times more money at risk in the trade than he was allowed. He claimed that the US$8 billion at risk was actually only US$65 million, the papers said.
US District Judge William Pauley said he was miffed that the government in a plea deal was holding Taylor responsible for no more than US$2.5 million in losses. The amount of money lost plays a major role in the length of any prison sentence.
Taylor was freed on US$750,000 bond. He could face up to 20 years in prison at a July sentencing.
