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Tom Rotko and Chuck Clayman Secure Short Sentence for Former Goldman Sachs Trader Charged With Large-Scale Fraud

After the passing of more than five years, the government charged Matthew Taylor, a former derivatives trader at Goldman Sachs, with fraud.  He had, within the span of 36 hours, accumulated an unauthorized $8 billion position in S&P E-mini futures, concealed his position from Goldman Sachs’ risk systems, and lied about it when asked by his supervisors and risk managers.  After firing Mr. Taylor, Goldman Sachs lost $118 million unwinding that position.

Notwithstanding the magnitude of loss, Tom Rotko and Chuck Clayman persuaded United States Disrtict Judge William H. Pauley, III to impose only a 9 month sentence.  As reported in The New York Times, Tom and Chuck carefully placed Mr. Taylor's conduct in the larger scope of financial industry upheaval of the past half-decade.  That framing provided the basis for a sentence significantly below federal guidelines as well as Judge Pauley's finding that Mr. Taylor's case “present[ed] a paradigm of everything that is wrong with Wall Street and the regulators who are charged with protecting the public.”

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