Remember Jim Glover AKA G-Love? For those who need refreshing, JG is the guy who we reported almost a year and a half ago had decided to help himself to a bonus after deciding the one awarded to him by management wasn't good enough.
He did so by having junior employees submit wires that would normally go to a counterparty to pay for trades, and then approving them to, instead, go to his personal account. Jimbo had put the plan into action months earlier, and hundreds of thousands of dollars later,* it was working out great! And it would’ve continued to keep working out great were it not for the damn chippies running the place and their “internal controls” finding out about the thing and taking issue with it, instead of congratulating G-Love for thinking outside the box. The matter was “referred to law enforcement" and we hadn't heard nary a peep about it since.
It popped up again this week, though, because The Glove has finally pleaded guilty.
Glover, the former director of middle and back office support at RBS Securities, cut a deal with federal prosecutors on Wednesday. He waived his right to indictment and pleaded guilty to one count of interstate fraud stemming from embezzlement. According to court documents, he allegedly siphoned off the money between January of 2009 and January of 2010 in nine transactions. He faces imprisonment of up to 10 years and a fine of up to $1.25 million and is expected to be sentenced in September.
According to the U.S. Attorney, Glover set up a personal banking account in New Jersey under the name CPS Funding, which was similar to a legitimate RBS Securities customer. The government said Glover would keep the money for his own use. One of Glover's responsibilities was to transfer funds from RBS to customers to settle or reconcile securities transactions. The company caught on in January of 2010, the same month Glover allegedly made his biggest transfer in excess of $300,000, according to court records.
Glover and RBS agreed to a private restitution deal, in which he paid back the money he took in two installments, according to the court. He paid RBS $359,180.55 in January of 2010 and then $266,600 in March. So RBS got back $625,180.55, which is $295.55 cents more than the government said he took.
*Obviously he had to go about this slowly so as not to draw attention to the situation and, you know, get caught or something.