A former bank examiner and senior manager at the Federal Reserve Bank of Richmond could face serious time in prison. He misused confidential information to trade shares of U.S. banks.
Robert Brian Thompson has pled guilty to insider trading and making false statements, according to the U.S. Department of Justice (DOJ).
Thompson took advantage of his position and used confidential supervisory information to make 69 trades involving stocks from seven unnamed financial institutions. His actions earned him a profit of $771,678.
To cover up his insider trading, he made false entries on his Form D. He claimed he held no stock in any publicly listed financial institution. He also insisted he had not engaged in any actions that could create a conflict of interest or violate the law.
The Fed’s Form D requires employees to report any ownership of assets, including shares in banks registered with the Federal Reserve System.
The DOJ states that Thompson's fraudulent activities took place between October 2020 and February 2024.
For his crimes, he faces a maximum penalty of 20 years in prison for insider trading and an additional five years for making false statements.
Sentencing is set for March 19, 2025. This case highlights the serious consequences of insider trading and the importance of integrity in financial institutions.