In investigating the multifaceted financial products sold by Goldman Sachs before the financial downfall, the Financial Crisis Inquiry Commission says that the firm has been deliberately dodging requests for interviews and documents. According to a Washington Post article, the inquiry panel subpoenaed Goldman Sachs, claiming that the bank has been uncooperative. The panel is also seeking more information regarding the firm’s transactions with AIG.
According to the article, Phil Angelides, the chairman of the FCIC, asserted that Goldman Sachs has handed over about 2.5 billion pages of documents to the commission. However, Goldman Sachs has not provided the panel with substantial guidance as to the location of requested information. Angelides stated, “We’re not going to let the American people be played for chumps here.” While Goldman Sachs has said that they are being cooperative in providing the FCIC with requested information, some speculate whether the firm may be stalling the investigation.
Goldman Sachs has faced several challenges over the last few months. The Securities and Exchange Commission accused the firm of defrauding investors in April. In addition, Goldman Sachs was involved in a 10-hour questioning by the Senate Permanent Subcommittee on Investigations regarding whether it deceived customers in the selling of its mortgage-backed securities products.
Investors who believe that they have been defrauded are entitled to file lawsuits against companies that employ deceptive securities practices, have made misrepresentations or who have conflicts of interests with their clients. If you have experienced financial loss due to illegal business tactics, please get in touch with the securities fraud lawyers at Panish Shea & Boyle LLP by calling 877-800-1700. Our firm has years of experience handling a wide range of business litigation cases and can help you through this difficult time. Call us today.
The Securities & Exchange Commission filed Civil Fraud charges against investment and securities bank Goldman Sachs Group Inc. on Friday, April 16, 2010 for allegedly selling ill-fated investment funds to investors. Goldman is being accused of creating and selling securities tied to subprime mortgages while failing to make known that the hedge fund that was betting against the investment actually took part in designing the product.
A security fund called a Credit Default Obligation, which has been named in this example as ABACUS 2007-ACI, is at the center of Goldman’s controversy. Credit default obligations do not include the properties themselves, and instead are bets that the properties referenced in a security will either increase or decrease in value. As the housing market depleted, the ABACUS security lost all value and the hedge fund manager who helped design the fund, John Paulson, brought in $1 billion for his firm.
Anyone can be a victim of securities fraud. However, anticipating these fraudulent events is nearly impossible, especially when an investment bank insures results, gains an investor’s trust, and neglects to disclose pertinent information that could greatly affect the outcome of the investment. In this instance, Goldman Sachs and Paulson were playing both sides of the fence by promoting a fund that they knew had a good chance of failing and going as far as to bet that it would.
If you. someone you love, or your business or organization has been affected by securities fraud, or have specifically done business with Goldman Sachs and lost significant money as a result, help is available. Contact the Goldman Sachs securities fraud attorneys at Panish Shea & Boyle LLP to learn more about how our legal team can assist you in successfully taking large corporate entities to trial. Panish Shea & Boyle LLP has constructed a reputation as an aggressive and unprecedented legal team providing considerable results for the clients we represent in various business litigation cases. Call 877-800-1700 for a free consultation today.
