Federal Reserve Banker Indicted
NEWARK, N.J. — A former director of the New York Federal Reserve Bank was charged today with leaking confidential interest rate information to a securities brokerage in what prosecutors said was the first insider trading case involving government securities.
Robert A. Rough, 49, of Layton, N.J., received $47,000 in interest-deferred loans from the now defunct Bevill, Bresler & Schulman investment firm in exchange for the information, the indictment charged. Bevill Bresler made millions of dollars in government securities trades based on Rough’s advance word about decisions made by the national Federal Reserve Board on the discount rate, the indictment said.
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