Ex-Federal Reserve worker admits to leaking secrets to Goldman Sachs
An ex-employee of the Federal Reserve Bank of New York pleaded guilty in Manhattan federal court on Wednesday to passing off secret government documents to Goldman Sachs.
Jason Gross, 37, admitted to a misdemeanor charge of theft of government property for passing along regulatory documents from the New York Fed to his friend and ex-colleague, according to a plea deal with the Justice Department.
That former colleague, Rohit Bansal, worked at Goldman at the time, according to people familiar with the case.
Just last week, Goldman paid $50 million to end a similar investigation by New York state regulators.
Bansal took the confidential documents from Gross — and pumped his pal for additional information while the two ate at Peter Luger Steak House.
The 35 Fed documents, as well as texts and conversations between the two through last year, concerned upcoming regulatory inspections of an unidentified Goldman client.
The regulatory information “gives you [an] idea of what [the] Board was looking at … Please don’t distribute,” Gross told Bansal, according to court documents.
Gross faces up to a year in prison and $30,000 in fines. Bansal is expected to plead guilty in Manhattan federal court on Thursday.