Former senior adviser to the Federal Reserve, John Harold Rogers, has been arrested on prices of leaking labeled commerce secrets and techniques to the Individuals’s Republic of China, DOJ says.
Rogers, 63, of Vienna, Virginia, served as a senior adviser within the Federal Reserve’s worldwide finance division from 2010 till his retirement in 2021.
Throughout his tenure, he had entry to confidential data, together with proprietary financial knowledge, deliberations on tariffs focusing on China, and delicate insights into the Federal Open Market Committee’s (FOMC) forthcoming bulletins.
In response to the indictment, Rogers started exploiting his place as early as 2018, soliciting and transmitting trade-secret data to people linked to China’s intelligence equipment.
These co-conspirators, masquerading as graduate college students, allegedly lured Rogers with presents, an all-expenses-paid seashore trip, and profitable educating alternatives at Fudan College in Shanghai, the place he was compensated roughly $450,000 as a part-time professor in 2023.
Learn the press release under:
John Harold Rogers, 63, of Vienna, Virginia, a former Senior Adviser for the Federal Reserve Board of Governors (FRB), was arrested immediately on prices that he conspired to steal Federal Reserve commerce secrets and techniques for the good thing about the Individuals’s Republic of China (PRC).
In furtherance of the conspiracy, allegedly made false statements to the Workplace of Inspector Basic for the Board of Governors of the Federal Reserve System and the Client Monetary Safety Bureau (FRB-OIG), and people false statements had a cloth affect on its investigation.
“As alleged, the defendant violated the belief positioned in him by the Federal Reserve Financial institution by placing U.S. commerce secrets and techniques in the arms of his PRC co-conspirators, understanding full effectively that such data would profit the PRC Authorities and PRC instrumentalities,” mentioned Devin DeBacker, head of the Justice Division’s Nationwide Safety Division. “The Justice Division will proceed to make use of all of the instruments at its disposal to disrupt financial espionage and defend our nationwide safety.”
“President Trump duties us with defending our fellow Individuals from all enemies, international and home. As alleged within the indictment, this defendant leveraged his place throughout the Federal Reserve to go delicate monetary data to the Chinese language authorities, a chosen adversary,” mentioned U.S. Lawyer Edward R. Martin Jr. for the District of Columbia. “Let this indictment function a warning to all who search to betray or exploit the US: regulation enforcement will discover you and maintain you accountable.”
“As alleged within the indictment, Rogers betrayed his nation whereas employed on the Federal Reserve by offering restricted U.S. monetary and financial data to Chinese language authorities intelligence officers,” mentioned Assistant Director Kevin Vorndran of the FBI Counterintelligence Division. “This data might permit adversaries to illegally acquire a strategic financial benefit on the expense of the U.S. This indictment sends a transparent message that the FBI and our companions will maintain accountable those that threaten our nationwide safety.”
“The Chinese language Communist Celebration has expanded its financial espionage marketing campaign to focus on U.S. authorities monetary insurance policies and commerce secrets and techniques in an effort to undermine the US and turn out to be the only real superpower,” mentioned Assistant Director in Cost David Sundberg of the FBI Washington Subject Workplace. “Immediately’s indictment represents the FBI’s unwavering dedication to guard U.S. nationwide safety pursuits and U.S. jobs and convey to justice those that are keen to betray their nation for private acquire.”
“This indictment sends a transparent message that those that intentionally misuse delicate Federal Reserve data for their very own private acquire and lie about it to investigators might be held accountable for his or her actions,” mentioned Particular Agent in Cost John T. Perez of the FRB-OIG, Headquarters Operations.
In response to the indictment, Rogers, a U.S. citizen with a Ph.D. in economics, labored as a Senior Adviser in FRB’s Division of Worldwide Finance of the FRB from 2010 till 2021, the place he was entrusted with confidential FRB data. The confidential data that Rogers allegedly shared together with his Chinese language co-conspirators, who labored for the intelligence and safety equipment of China and who posed as graduate college students at a PRC college, is economically beneficial when secret.
China holds a considerable amount of U.S. international debt (roughly $816 billion as of October 2024). The info Rogers shared together with his co-conspirators might permit China to govern the U.S. market, in a fashion much like insider buying and selling. Gaining advance information of U.S. financial coverage, together with advance information of modifications to the federal funds price, might present China with a bonus when promoting or shopping for U.S. bonds or securities.
The indictment alleges that, from not less than 2018, Rogers allegedly exploited his employment with the FRB by soliciting trade-secret data concerning proprietary financial knowledge units, deliberations about tariffs focusing on China, briefing books for designated governors, and delicate details about Federal Open Market Committee (FOMC) deliberations and forthcoming bulletins. He handed that data electronically to his private e mail account, in violation of FRB coverage, or printed it previous to touring to China, in preparation for conferences together with his co-conspirators.
Underneath the guise of educating “courses,” Rogers met together with his co-conspirators in lodge rooms in China the place he conveyed delicate, trade-secret data that belonged to the FRB and the FOMC. In 2023, Rogers was paid roughly $450,000 as a part-time professor at a Chinese language college.
On Feb. 4, 2020, in response to questioning by the FRB-OIG, Rogers lied about his accessing and passage of delicate data and his associations together with his co-conspirators.
Rogers is charged with conspiracy to commit financial espionage and with making false statements.
The FBI Washington Subject Workplace and FRB-OIG are investigating the case.
Assistant U.S. Lawyer Kimberly Paschall for the District of Columbia and Trial Attorneys Nicholas Hunter and Steve Marzen of the Nationwide Safety Division’s Counterintelligence and Export Part are prosecuting the case.
