A former senior advisor to the Federal Reserve was apprehended on Friday for purportedly selling confidential economic information to the Chinese government.
John Harold Rogers, 63, from Vienna, Virginia, has been indicted by a grand jury on charges of allegedly misappropriating Federal Reserve trade secrets and selling them to Chinese intelligence officials. According to court documents, Rogers is said to have sold this sensitive information for a minimum of $450,000 while masquerading as a university professor in China. He is also accused of providing false statements to investigators from the Federal Reserve and the Consumer Financial Protection Bureau.
Rogers made his initial court appearance on Friday, coinciding with the announcement of his arrest and indictment by the Justice Department. He is currently being detained without bail and is set to be arraigned on Tuesday.
The information that Rogers allegedly shared with his co-conspirators could enable China to influence the U.S. market in a manner akin to insider trading, as stated in a press release from the U.S. Attorney’s Office in Washington D.C. This data would grant the Chinese Communist Party advance insight into U.S. economic policy, including prior knowledge of adjustments to the federal funds rate, which could provide China with a strategic advantage in trading U.S. bonds or securities, according to prosecutors. It was further noted that China possesses approximately $816 billion in U.S. government debt.
Prosecutors indicated that Rogers’ alleged co-conspirators are affiliated with China’s intelligence and security services, both of whom pretended to be graduate students at a Chinese university. The conspirators are said to have given Rogers various gifts, including a paid vacation at the beach, and covered his airfare, meals, and accommodations during his visits to China, where he served as a part-time professor at Fudan University in Shanghai following his retirement from the Federal Reserve. In 2023, he received $450,000 for his role at the university.
On February 4, 2020, during an inquiry conducted by investigators from the Office of the Inspector General for the Federal Reserve Board, Rogers provided false information regarding his access to and dissemination of sensitive data, as well as his connections with co-conspirators.
Rogers faces charges of conspiracy to commit economic espionage and making false statements to investigators. The charge of conspiracy to commit espionage carries a potential maximum sentence of 15 years in prison and a fine of up to $5 million. The charge of lying to federal investigators could result in a maximum prison term of five years.
Jonathan Gitlen, an attorney representing Rogers, informed the Associated Press that his client denies any misconduct and plans to enter a plea of not guilty. “Dr. Rogers denies the allegations outlined in the indictment,” he stated, noting that further comments from his client will be forthcoming.
“President Trump has entrusted us with the responsibility of safeguarding our fellow Americans from all threats, both foreign and domestic. As alleged in the indictment, this defendant exploited his role within the Federal Reserve to transmit sensitive financial information to the Chinese government, which is recognized as a foreign adversary,” remarked D.C. U.S. Attorney Ed Martin. “This indictment should serve as a cautionary message to anyone who contemplates betraying or exploiting the United States: law enforcement will pursue you and ensure you are held accountable.”
