Former Federal Reserve Employee Who Leaked Information to Goldman Sachs Avoids Jail

Screen Shot 2016-03-16 at 10.14.54 AM

“All animals are equal, but some animals are more equal than others.”
 George Orwell’s Animal Farm

The U.S. Drug Enforcement Administration has allowed its employees to stay on the job despite internal investigations that found they had distributed drugs, lied to the authorities or committed other serious misconduct, newly disclosed records show.

Lawmakers expressed dismay this year that the drug agency had not fired agents who investigators found attended “sex parties” with prostitutes paid with drug cartel money while they were on assignment in Colombia. 

Of the 50 employees the DEA’s Board of Professional Conduct recommended be fired following misconduct investigations opened since 2010, only 13 were actually terminated, the records show. And the drug agency was forced to take some of them back after a federal appeals board intervened.

In one case listed on an internal log, the review board recommended that an employee be fired for “distribution of drugs,” but a human resources official in charge of meting out discipline imposed a 14-day suspension instead. The log shows officials also opted not to fire employees who falsified official records, had an “improper association with a criminal element” or misused government vehicles, sometimes after drinking.

– From the post: Two-Tiered Justice: How DEA Agents Commit Egregious Acts with Zero Accountability

If you attempted to create the ideal privileged, untouchable, crony mutant in a test tube you might come up with a Federal Reserve employee who stole government information and leaked it to Goldman Sachs. You’d assume that someone with such a pedigree couldn’t possibly be sent to jail under America’s two-tiered Banana Republic justice system — and you’d be absolutely right.

Reuters reports:

A former Federal Reserve Bank of New York employee was spared prison on Wednesday, disappointing prosecutors who said his leaking of confidential documents to a friend at Goldman Sachs Group Inc justified time behind bars.

Jason Gross, 37, was fined $2,000 by U.S. Magistrate Judge Gabriel Gorenstein in Manhattan and sentenced to a year of probation with 200 hours of community service after pleading guilty to a misdemeanor charge of theft of government property.

Prosecutors had sought six to 12 months in prison for Gross, who in November admitted to providing confidential information to Rohit Bansal, his former supervisor at the Federal Reserve Bank of New York who had left to work at Goldman Sachs.

But while Gorenstein said Gross had abused the position of trust he had at the New York Fed, his conviction coupled with the loss of a career had already sent “a powerful message to others.”

The case highlighted the so-called revolving door on Wall Street, in which regulators take new jobs at the banks they formerly oversaw.

Thank you for your service Jason, and enjoy life on the outside. I’m sure there are plenty of jobs in Washington D.C. open to someone with your resume and unmistakable loyalty to the bankster oligarchs.

Screen Shot 2016-03-16 at 10.08.38 AM

Of course, this is far from the most egregious example of America’s endemic two-tier justice system. See the following…

Two-Tiered Justice: How DEA Agents Commit Egregious Acts with Zero Accountability

Elizabeth Warren Releases Blistering Report on Corporate Criminality – Singles Out SEC Uselessness

Elizabeth Warren Confronts Eric Holder, Ben Bernanke and Mary Jo White on Bankster Immunity

Some Money Launderers are “More Equal” than Others

Some Money Launderers are More Equal than Others Part 2 – CEO of BitInstant is Arrested

David Petraeus – How This Leaker of Classified Information is Peddling KKR Funds as Opposed to Serving Jail Time

Aaron Swartz Died 3 Years Ago Today – In Remembrance of This Special Soul

How the U.S. Government and HSBC Have Teamed Up to Hide the Truth From a Pennsylvania Couple

How the Department of Justice is Actively Trying to Prevent Civil Asset Forfeiture Reform

New Report – The United States’ Sharp Drop in Economic Freedom Since 2000 Driven by “Decline in Rule of Law”

In Liberty,
Michael Krieger

Like this post?
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G


Follow me on Twitter.

1 thought on “Former Federal Reserve Employee Who Leaked Information to Goldman Sachs Avoids Jail”

  1. remember….

    These Are the Wrong Gatekeepers to Clean Up the Culture of Wall Street By Pam Martens and Russ Martens: February 25, 2016

    In a feeble public relations move, Bill Dudley, the President of the Federal Reserve Bank of New York and FINRA, the self-regulatory body on Wall Street, are making noises about cleaning up the culture on Wall Street. It’s always dangerous to make any predictions when it comes to Wall Street but in this case we can confidently predict that when it comes to the New York Fed and FINRA, the only possible impact they could have on the culture is to make it worse.

    The New York Fed didn’t see a problem for Bill Dudley’s spouse to collect $190,000 a year in deferred compensation from JPMorgan Chase while the New York Fed served as the bank’s main regulator. The New York Fed didn’t see a problem for Citigroup’s CEO, Sandy Weill, or JPMorgan CEO, Jamie Dimon, to sit on its Board of Directors as their banks embarked on a serial reign of abuses against the investing public.

    In 2013, Carmen Segarra, a lawyer and former Bank Examiner at the New York Fed, filed a lawsuit alleging that Relationship Managers at the New York Fed obstructed her investigation of Goldman Sachs and attempted to bully her into changing her negative findings. When Segarra refused, she was fired by the New York Fed according to the lawsuit. Segarra later produced internal tape recordings backing up the toothless regulation of Goldman by the New York Fed.

    The New York Fed epitomizes failing up. Timothy Geithner was the President of the New York Fed from November 17, 2003 right through the buildup of unprecedented leverage and toxic subprime assets on Wall Street. He continued in the position until 2009, despite failing to foresee the impending crash or the systemic corruption. As a reward for his negligence as a regulator, President Obama appointed him to become the U.S. Treasury Secretary in 2009, where he proceeded to oversee an unprecedented taxpayer bailout of Wall Street.

    http://wallstreetonparade.com/2016/02/these-are-the-wrong-gatekeepers-to-clean-up-the-culture-of-wall-street/

    Reply

Leave a Reply