Goldman Sachs accused of fraud

| 16/04/2010

(UKPA) Wall Street giant Goldman Sachs has been accused of defrauding investors in a civil lawsuit filed by America’s Securities and Exchange Commission (SEC). The US government’s financial watchdog alleges that Goldman Sachs misled investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering. The SEC announced it had lodged civil fraud charges against the company and one of its vice presidents – news that sent stock markets worldwide reeling. The SEC alleges Goldman, which employs 5,500 people in the UK, failed to disclose that one of its clients helped create – and then bet against – sub-prime mortgage securities that Goldman sold to investors.

 

Category: Business

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