SEC Accuses Goldman Sachs of Civil Fraud
April 17, 2010
AP
4/16/2010
The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in subprime investments it sold as the housing market was collapsing. The Securities and Exchange Commission said in a civil complaint Friday that Goldman failed to disclose that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold to other investors.
Advertisement
One Comment
leave one →
Harold
Why has U.S. Government not filed criminal complaints against Goldman Sachs based on the information it used to file civil fraud charges?
If there are other companies that assisted Goldman Sachs while having actual knowledge of Goldman Sachs committing frauds, why is U.S. Government ignoring them as conspirators? Should U.S. Government treat Goldman Sachs’ alleged frauds as coming under (RICO) The Racketeer Influenced and Corrupt Organizations Act? And use RICO to go after and sue all players that knowingly profited in ill-gotten gains selling investors over rated mortgages reasonably expected to default; or fraudulently induced insurance companies to insure mortgage securities expected to default? If government has evidence of other corporation co-conspirators that knowingly helped Goldman Sachs fraudulently sell sub-prime mortgages, government should explain to U.S. Taxpayers why government has elected not to pursue those alleged wrongdoers to reimburse U.S. taxpayers, still paying for the Bank bailout.