Jeffrey Cho, a former Senior Supervision Analyst with the Federal Reserve Bank of Chicago, pleaded guilty to stealing approximately 35 documents containing confidential financial and other information while he was interviewing for employment and after he accepted a job offer with a private company. Mr. Cho’s sentencing is scheduled for June 21, when he could be fined up to US $100,000 and sentenced to up to one year imprisonment. Last year, Rohit Bansal, a former employee of Goldman, Sachs & Co and the New York Federal Reserve Bank, and Jason Gross, a former employee of the New York Fed only, pleaded guilty to charges related to the unauthorized use of non-public confidential information by Mr. Bansal while employed by Goldman which he obtained from Mr. Gross. (Click here for details of this matter, in the article, “Investment Bank Group Fined US $50 Million by NY State Agency for Actions of Malfeasant Employee” in the November 1, 2015 edition of Bridging the Week.)

My View: This case provides a good example of why proprietary trading firms are scared to death to provide source code to regulators, as proposed by the Commodity Futures Trading Commission in Regulation Automated Trading. (Click here to access full background.)