Former Goldman Executive Sues Bank Seeking Legal Fees in Fed Probe – Wall Street Journal

A former Goldman Sachs Group Inc. executive sued the bank Thursday seeking legal fees in connection with a continuing government investigation into the theft of central-bank secrets two years ago.

Joseph Jiampietro, a former managing director who worked at Goldman until it fired him in October 2014, filed a lawsuit alleging the bank hasn’t responded to his demands that it pay legal fees and expenses as he defends himself against probes into the incident.

Two years ago, Mr. Jiampietro was working at Goldman in its investment-banking unit when a colleague at the time, Rohit Bansal, managed to get copies of confidential Federal Reserve documents from a then staffer at the Federal Reserve Bank of New York, where Mr. Bansal used to work.

Goldman investigated Mr. Jiampietro’s conduct and concluded that he failed to report the incident to the bank’s compliance department. A spokesman for Goldman had no immediate comment on the lawsuit.

In a previous statement, the bank said that upon discovering the secret documents, it began an investigation, notified regulators at the Fed and overhauled its hiring practices. The bank said it has “zero tolerance for improper handling of confidential information.”

Adam Ford, Mr. Jiampietro’s lawyer at Ford O’Brien LLP, said his client had been an officer of the bank, as listed in its 2011-13 annual reports. Under the firm’s bylaws, he said his client is “entitled to advancement of legal fees to defend ongoing proceedings and indemnification for fees incurred.”

Last year, the Fed banned Mr. Bansal from the banking industry. The Fed is preparing to bring an enforcement action against Mr. Jiampietro, people familiar with the matter said.

A spokesman for the Federal Reserve Board, which is handling the investigation, declined to comment.

Mr. Jiampietro’s lawsuit, filed Thursday in Delaware Chancery Court, asks for Goldman to advance attorney fees and expenses to pay for what he claims is that forthcoming action by the Fed. “The Fed has threatened to soon institute an enforcement proceeding against him,” the complaint reads.

He worked from Goldman between January 2011 and October 2014. His boss at Goldman, Scott Romanoff, is still at the firm and a managing director in the investment banking’s financial institutions group. He was the one who alerted the bank’s compliance group about the stolen documents, Goldman said.

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