The Wall Street firm has been charged with investment fraud by the SEC.
Washington (WiredPRNews.com) – The Securities and Exchange Commission has reportedly charged Goldman Sachs and Co. with investment fraud. As reported by the Associated Press (AP), the SEC filed the charges against the influential financial firm Friday, alleging it sold mortgage investments that were designed to decrease in value for the benefit of hedge fund client, Paulson and Company.
SEC Enforcement Director Robert Khuzami is quoted by the AP as releasing the statement regarding the allegations, “Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party.”
As noted in the report, Goldman has stated it plans to contest the charges.
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