Ex-Goldman Sachs trader Matthew Marshall Taylor charged with $118m fraud Former Goldman Sachs trader Matthew Taylor leaves Manhattan federal court in New York, where he was charged with defrauding Goldman of $US118 million while trying to cover up an unauthorised $US8 billion trading position. Picture: AP Photo/Louis Lanzano Source: AP A FORMER trader with US banking giant Goldman Sachs was arrested on criminal charges of fraud linked to a scheme to hide an $US8 billion ($7.7 billion) futures bet, officials said. Matthew Marshall Taylor "was in FBI custody as of early this morning," a source familiar with the government's case told AFP on condition of anonymity. The federal prosecutor's office in Manhattan said Mr Taylor was due to appear before a judge on the charges "in connection with a scheme to accumulate and conceal an unauthorised $8 billion position in a trading account that he managed at Goldman, Sachs & Co." In November, the Commodities Futures Trading Commission filed a civil suit accusing Mr Taylor of defrauding his employer "by intentionally concealing... the true huge size, as well as the risk and potential profits or losses associated." "On or about December 13, 2007, Taylor's scheme culminated in his concealment of an approximately $8.3 billion long (S&P 500) e-mini futures position," the watchdog said, alleging that Mr Taylor ended up defrauding Goldman Sachs of $US118.4 million. In December last year, the CFTC ordered Goldman Sachs to pay $US1.5 million in a fine for the actions of its trader, saying "it failed to diligently supervise its employees for several months in late 2007."