Goldman Poaches FBI Officer Who Caught Madoff

Patrick Carroll will now police the investment bank from within its compliance department.

Goldman Sachs has hired the federal investigator responsible for the conviction of fraudster Bernie Madoff and inside-trader Raj Rajaratnam to its compliance team.

Patrick Carroll has joined the investment bank as a vice president in its compliance, surveillance, and strategy group, reporting to Alan Cohen, global head of compliance.

He spent nearly 25 years with the Federal Bureau of Investigation (FBI). In 2003, as supervisory special agent, Carroll oversaw “Operation Wooden Nickel”, sending an undercover agent to work in the foreign exchange markets and uncover “fraudulent activities” dating back 20 years. The investigation resulted in almost 50 arrests and at least 40 convictions, according to Bloomberg.

In December 2008, his team arrested Bernie Madoff after his $65 billion Ponzi scheme began to collapse. Last year, five former Madoff staffers were found guilty on 31 counts of fraud, while Madoff himself is serving a 150-year sentence.

Carroll’s team also secured the conviction of Raj Rajaratnam, co-founder of hedge fund manager Galleon Group, for insider trading. He was found guilty of 14 counts of securities fraud and conspiracy in 2011 and is serving an 11-year sentence. This investigation was the first significant use of wiretaps in a securities fraud case, according to Bloomberg.

A spokesperson for Goldman Sachs declined to comment.

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