The Securities & Exchange Commission (SEC) charged investment banking giant Goldman Sachs with civil fraud related to the sale of subprime mortgage instruments to investors. The SEC also alleges a Goldman client (hedge fund giant Paulson & Co.,Inc.)bet against and influenced the prices of the same structured products Goldman created and touted to their clients. The complaint alleges the investors who were improperly sold the investments lost more than a billion dollars.
This is only the latest in a sobering string of large brokerage firms being charged with fraud related to the sale of misrepresented subprime-related investments.
The full April 16, 2010 Associated Press article may be found at:
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