FILE PHOTO: The Federal Reserve building is seen in Washington, U.S., Jan. 26, 2022.
Joshua Roberts | Reuters
A former senior advisor for the Federal Reserve was arrested Friday on charges that he conspired to steal Fed trade secrets for the benefit of China.
The data that the advisor, John Harold Rogers, shared with his co-conspirators could allow China to manipulate the U.S. market “in a manner similar to insider trading,” the Department of Justice said.
The co-conspirators were members of China’s intelligence and security apparatus who posed as graduate students at a university in that country, according to prosecutors.
Rogers, a 63-year-old resident of Vienna, Virginia, was indicted in U.S. District Court in Washington, D.C., on charges of conspiracy to commit economic espionage and making false statements.
He worked as a senior advisor in the international finance division of the Federal Reserve Board of Governors from 2010 until 2021, the DOJ said.
As part of that job, he “was entrusted with confidential FRB information,” according to the department.
Rogers since 2018 allegedly exploited his employment “by soliciting trade-secret information regarding proprietary economic data sets, deliberations about tariffs targeting China, briefing books for designated governors, and sensitive information about Federal Open Market Committee (FOMC) deliberations and forthcoming announcements,” the DOJ said.
The indictment accuses him of passing that information electronically from his personal email, in violation of Fed policy, or printing it out prior to traveling to China to meet with co-conspirators
“Under the guise of teaching ‘classes,’ Rogers met with his co-conspirators in hotel rooms in China where he conveyed sensitive, trade-secret information that belonged to the FRB and the FOMC,” the DOJ said.
FBI Assistant Director in Charge David Sundberg in a statement said, “The Chinese Communist Party has expanded its economic espionage campaign to target U.S. government financial policies and trade secrets in an effort to undermine the U.S. and become the sole superpower.”
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In a shocking turn of events, a Federal Reserve advisor has been accused of spying for China, according to the Department of Justice. This betrayal of trust has sent shockwaves through the financial world, raising concerns about potential security breaches and the safety of sensitive information.
The accused advisor, whose identity has not been disclosed, allegedly passed on confidential information to Chinese officials in exchange for financial compensation. The extent of the damage caused by this espionage is still being investigated, but the implications are deeply troubling.
The Federal Reserve plays a crucial role in maintaining the stability of the US economy, and any breach of security within its ranks is cause for serious concern. The DOJ has vowed to pursue justice in this case and hold those responsible accountable for their actions.
This scandal serves as a stark reminder of the importance of vigilance and security measures in protecting our nation’s most sensitive information. It also underscores the growing threat of foreign espionage in the digital age, highlighting the need for increased awareness and safeguards to prevent future incidents.
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