NEW YORK, April 3 Ex-Goldman Sachs Group Inc
trader Matthew Marshall Taylor is expected to turn
himself in to federal authorities to plead guilty to charges
that he defrauded the Wall Street bank out of $118 million in
2007, two sources familiar with the matter said.
Taylor was expected to voluntarily turn himself in to agents
with the Federal Bureau of Investigation on Wednesday morning,
said the sources, who spoke on condition of anonymity.
The Commodities Futures Trading Commission filed a lawsuit
against Taylor in November, accusing him of fabricating trades
to conceal an $8.3 billion futures position. The CFTC sought
$130,000 in civil penalties.
Goldman itself paid $1.5 million last year to settle charges
that it had failed to appropriately supervise Taylor. The bank
has since put in place procedures to catch wayward trading
activity more quickly.
According to charges outlined against him, Taylor
established his futures position in e-mini Standard & Poor's
futures contracts on Dec. 13, 2007. The next day, it was flagged
by Goldman's controls. By the time the trade had been unwound,
it had caused $118 million in losses.
After leaving Goldman Sachs, Taylor moved on to a position
at Morgan Stanley in March 2008. He left that bank in
July of last year.