Goldman Sachs Employee Convicted of Child Sexual Assault Remains Employed for Months
Shock and Scandal
A disturbing story has emerged about a banker at Goldman Sachs who remained employed by the company’s London office until last month, despite being convicted of sexually assaulting a child. Ronan O’Grady, 33, pleaded guilty to eight counts of sexual assault and was sentenced to two years in prison.
The Offences
O’Grady’s crimes took place between 2004 and 2008, when he was under 18 years old. The Courts Service of Ireland confirmed his guilty plea and sentence, which was handed down on June 28.
Employment at Goldman Sachs
O’Grady worked as an executive director in Goldman’s wealth unit, but his employment was terminated in June when the bank became aware of his conviction. The company requires employees to disclose any criminal proceedings at regular intervals, but O’Grady failed to do so until June 2024.
Goldman’s Response
In a statement, Goldman Sachs said, "We were shocked to learn of Mr O’Grady’s appalling past offences and he is no longer employed by the firm. Our thoughts are with the victim." The company added that O’Grady concealed his criminal proceedings from them until they became aware of the situation.
UK Financial Conduct Authority’s Role
O’Grady remains listed on the UK Financial Conduct Authority’s (FCA) register of authorised persons, which confirms individuals are "fit and proper" to work in regulated functions. The FCA has responsibility for approving senior management functions in the industry. However, the regulator declined to comment on the O’Grady case.
Complexity of Non-Financial Misconduct
The FCA has been grappling with how to handle non-financial misconduct by regulated firms and individuals in recent years. In 2021, the regulator banned financial adviser Jon Frensham after he was convicted of attempting to meet a child following sexual grooming. The FCA’s role in such cases can be complex, as demonstrated by the Frensham case.
Crispin Odey’s Allegations
In another case, hedge fund founder Crispin Odey was investigated by the Financial Times regarding multiple claims of sexual assault and harassment. Odey threatened to take the FCA to court if the regulator did not drop its investigation into his alleged sexual misconduct. The regulator’s investigation into Odey continues, and he has disputed the allegations and issued a libel claim.
Conclusion
The O’Grady case highlights the importance of effective reporting and monitoring of criminal proceedings by employers and regulators. It also underscores the complexity of handling non-financial misconduct and the need for a nuanced approach. The incident serves as a reminder that individuals with a history of criminal behaviour can still be employed in the financial industry, and that regulators must balance the need to protect the public with the need to ensure fairness and due process.
FAQs
Q: How did O’Grady remain employed by Goldman Sachs for so long?
A: O’Grady failed to disclose his criminal proceedings at regular intervals, as required by Goldman Sachs. It was not until June 2024 that the bank became aware of his conviction.
Q: What is the UK Financial Conduct Authority’s role in the O’Grady case?
A: The FCA has responsibility for approving senior management functions in the industry and confirms individuals are "fit and proper" to work in regulated functions. However, the regulator declined to comment on the O’Grady case.
Q: How common is non-financial misconduct in the financial industry?
A: There is no official data on the prevalence of non-financial misconduct in the financial industry. However, the FCA has been grappling with the issue in recent years and has taken steps to address it.
Q: What is the impact of the O’Grady case on the financial industry?
A: The O’Grady case highlights the importance of effective reporting and monitoring of criminal proceedings by employers and regulators. It also underscores the complexity of handling non-financial misconduct and the need for a nuanced approach.
Author: www.ft.com
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