The Blubber

Former senior Federal Reserve adviser John Harold Rogers has been arrested on charges of conspiring to steal Fed trade secrets for the benefit of China, the Justice Department announced on Friday.

Rogers, who served as a senior adviser in the Fed’s international finance division from 2010 to 2021, is accused of sharing confidential information with Chinese co-conspirators. Prosecutors say these individuals worked within China’s intelligence and security apparatus while posing as graduate students.

A U.S. Attorney’s Office spokesperson stated that a judge has ordered Rogers to remain in custody until a detention hearing scheduled for next Tuesday.

A Federal Reserve spokesperson declined to comment on the matter, and Rogers’ attorney did not immediately respond to requests for comment.

A representative from the Chinese Embassy said they were not familiar with the specifics of the case but asserted that “China is a country that upholds the rule of law.” The spokesperson also dismissed allegations of Chinese interference in other nations’ internal affairs, stating, “We oppose any smear and attack on China with so-called ‘spy risks.’”

The Federal Reserve Connection

The Fed’s international finance division conducts fundamental research, policy analysis, and reporting on global economic activity, U.S. external trade and capital flows, and trends in international financial markets and institutions, according to the central bank’s website.

According to the indictment, Rogers began soliciting confidential information in 2018, including sensitive economic data and details of interest rate deliberations. He allegedly passed this information to his contacts in China while presenting himself as an educator teaching classes there.

Prosecutors say Rogers was compensated for his activities through travel perks, including airfare, lodging, and dining expenses, and was even offered payment for a beach vacation.

He faces charges of conspiracy to commit economic espionage and making false statements.