A former senior manager from the Federal Reserve Bank of Richmond, Robert Brian Thompson, has pleaded guilty to committing insider trading and lying about it to his employer. This case has caught the attention of many because of the high-profile position Thompson held and the serious crimes he committed while working in that role.
What Happened?
Robert Brian Thompson, who is 43 years old and from Mosley, Virginia, worked as a senior manager at the Federal Reserve Bank of Richmond (FRBR). His job was very important: he was a bank examiner, meaning he was responsible for overseeing and checking the financial health of different financial institutions like banks and credit unions. Because of his position, Thompson had access to confidential and highly sensitive information, which he was not allowed to share with anyone or use for personal gain.
This information, known as Confidential Supervisory Information (CSI), was meant to stay private, as it could affect the stock market if it were made public. As part of his duties, Thompson was required to fill out annual forms, called “Form D,” that asked if he had any financial interest in any of the financial institutions that the Federal Reserve oversees. The form also asked if there were any conflicts of interest or illegal activities related to his work. In these forms, Thompson was expected to be honest and transparent about his assets and financial dealings.
But from October 2020 to February 2024, Robert Brian Thompson violated these rules. He used confidential information he learned at work to make trades in publicly traded financial institutions, which helped him earn nearly $772,000 in profits. In other words, Thompson used his insider knowledge about the banks he was supposed to be supervising to make illegal investments in their stocks. This kind of behavior is called “insider trading,” and it’s against the law.
How Did Robert Brian Thompson Hide His Actions?
Robert Brian Thompson didn’t just commit these illegal trades and expect to get away with it. He also went to great lengths to cover up his actions. Each year, he was required to fill out the “Form D” that would report if he had any financial interests in financial institutions, such as owning shares in any banks. On these forms, he falsely claimed that he had no such assets, meaning he lied to the Federal Reserve about his personal financial holdings.
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For example, in each year from 2020 through 2024, Thompson falsely stated on his form that he didn’t own any shares in publicly traded banks and that he wasn’t involved in any illegal activities or conflicts of interest. These false statements were a way for Thompson to hide the fact that he was using his position at the Federal Reserve to make a profit from insider trading.
Legal Consequences
Robert Brian Thompson’s actions have now caught up with him. He has pleaded guilty to two serious charges: one for insider trading and one for making false statements. Insider trading, which is the act of using confidential information to make money in the stock market, carries very severe penalties. Thompson could face up to 20 years in prison for this crime. On top of that, making false statements on official forms is also a serious offense, and Thompson could face an additional five years in prison for that charge.
Robert Brian Thompson’s sentencing is scheduled for March 19, 2025, where a federal judge will determine the final punishment. The judge will take into account the U.S. Sentencing Guidelines, which are a set of rules to help judges decide how long someone should be sentenced based on their crimes, and other factors that could affect his punishment.
This case was investigated by the Federal Reserve Board’s Office of Inspector General (FRB-OIG), which is responsible for looking into allegations of fraud and misconduct within the Federal Reserve. The case was prosecuted by federal officials, including the Justice Department’s Criminal Division, as well as U.S. Attorney Jessica D. Aber and Assistant U.S. Attorney Thomas A. Garnett.
In summary, Robert Brian Thompson’s guilty plea is a reminder of the seriousness of insider trading and the importance of honesty in financial reporting. His actions, which allowed him to profit from confidential information, have resulted in criminal charges that will have long-lasting consequences for him.
