John Harold Rogers, a former senior adviser at the Federal Reserve, has been indicted on charges of economic espionage for allegedly providing sensitive U.S. economic data to Chinese intelligence officials. The indictment was announced on February 1, 2025, following his arrest that same day in Washington, D.C. Rogers is accused of misappropriating trade secrets and selling them for at least $450,000 while posing as a university professor in China[1][2][3].
Background on the Case
- Indictment Details: Rogers, 63, from Vienna, Virginia, has been charged with conspiracy to commit economic espionage and making false statements to federal investigators. He allegedly began communicating with two Chinese co-conspirators as early as 2013[1][2][4].
- Nature of Information Shared: The indictment states that Rogers provided confidential information including proprietary economic data, analyses, briefing documents for Federal Reserve governors, and details from Federal Open Market Committee (FOMC) discussions. This information could potentially give China a strategic economic advantage over the U.S., particularly in manipulating markets akin to insider trading[1][5][6].
- Method of Operation: Rogers reportedly transmitted sensitive information via personal email or printed copies before traveling to China. He met with his co-conspirators under the guise of teaching classes, where he shared classified information in hotel rooms[2][4][5].
Financial Transactions and Implications
- Compensation: In 2023, Rogers received approximately $450,000 for his role as a part-time professor at a Chinese university, which served as a cover for his espionage activities[1][3][4].
- National Security Concerns: The U.S. Department of Justice emphasized that the information shared could allow China to manipulate U.S. markets and gain insights into economic policies such as changes in the federal funds rate. As of October 2024, China held about $816 billion in U.S. foreign debt, highlighting the potential impact of Rogers’ actions on U.S. financial stability[2][5].
Legal Proceedings
- Current Status: Following his initial court appearance, Rogers is being held without bail and is scheduled for arraignment on Tuesday. If convicted of the charges against him, he faces significant prison time—up to 20 years for conspiracy to commit economic espionage and additional penalties for making false statements[1][3][6].
The case underscores ongoing concerns about foreign espionage targeting U.S. financial institutions and highlights the importance of safeguarding sensitive economic information from potential adversaries.
Citations:
[1] https://apnews.com/article/federal-reserve-indictment-john-rogers-trade-secrets-85495074e61d8455d9f65e3660f8af1c
[2] https://abcnews.go.com/Business/wireStory/former-federal-reserve-adviser-indicted-arrested-alleged-espionage-118346241
[3] https://san.com/cc/federal-reserve-adviser-charged-with-economic-espionage-for-helping-china/
[4] https://www.fox9.com/news/fed-economic-espionage-china
[5] https://www.cnbc.com/2025/01/31/ex-senior-federal-reserve-advisor-charged-with-economic-espionage-to-benefit-china.html
[6] https://www.cbsnews.com/news/former-senior-adviser-for-federal-reserve-indicted-on-economic-espionage-charges/
[7] https://www.justice.gov/opa/pr/former-senior-adviser-federal-reserve-indicted-charges-economic-espionage
[8] https://www.youtube.com/shorts/edVhv-RiO-0
[9] https://www.washingtonpost.com/dc-md-va/2025/01/31/federal-reserve-john-rogers-arrested-china/
[10] https://www.reuters.com/world/us/ex-federal-reserve-adviser-arrested-passing-trade-secrets-china-2025-01-31/
[11] https://www.reuters.com/world/us/former-federal-reserve-adviser-arrested-passing-trade-secrets-china-justice-2025-01-31/
