Defendant Name:
Goldman, Sachs & Co.
Defendant Type:
Subsidiary of Public Company
Document Reference:
2010-123
Document Details
Legal Case Name
SEC v. Goldman Sachs & Co. and Fabrice Tourre
Document Name
Goldman Sachs to Pay Record $550 million to Settle SEC Charges Related to Subprime Mortgage CDO; Firm Acknowledges CDO Marketing Materials Were Incomplete and Should Have Revealed Paulson's Role
Document Date
15-Jul-2010
Document Format
Civil Proceeding
Case Number
10-cv-03229
Federal District Court
New York, Southern District of New York
Federal District Judge
Barbara S. Jones
Allegation Type
Broker Dealer
Document Summary
On July 15, 2010, the SEC announced that, "Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman mislead investors in a subprime mortgage product just as the U.S. housing market was starting to collapse." The SEC characterized the penalty as "the SEC's largest-ever penalty paid by a Wall Street firm." While Goldman agreed to settle the SEC's charges without admitting or denying the allegations, the SEC noted that Goldman "acknowledged that its marketing materials for the subprime product contained incomplete information."
Disgorgement & Penalty Information
Resolutions
Injunction
Various remedial actions by Goldman in its review and approval of offerings of certain mortgage securities
Fair Funds
Monetary Penalties:
Total Penalty
Individual:
$550,000,000.00
Shared:
Related Documents:
Complaint
On April 16, 2010, SEC brought a securities fraud action against Goldman, Sachs & Co. and its employee, Fabrice Tourre.The SEC alleged that the defendants made "materially misleading statements and omissions in connection with a synthetic collateralized debt obligation ("CDO") GS&Co structured and marketed to investors."
The SEC Charges Goldman Sachs with Fraud in Connection with the Structuring and Marketing of a Synthetic CDO
On April 16, 2010, the SEC announced that it filed securities fraud charges against Goldman, Sachs & Co. and its employee, Fabrice Tourre, for making material misstatements and omissions in connection with a synthetic collateralized debt obligation that Goldman Sachs & Co. structured and marketed to investors.
2010-59
16-Apr-2010
Press Release--Civil Action
SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages
On April 16, 2010, the SEC announced: "The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter." According to the SEC's complaint: "the marketing materials for the CDO known as ABACUS 2007-AC1 (ABACUS) all represented that the RMBS portfolio underlying the CDO was selected by ACA Management LLC (ACA), a third party with expertise in analyzing credit risk in RMBS. The SEC alleges that undisclosed in the marketing materials and unbeknownst to investors, the Paulson & Co. hedge fund, which was poised to benefit if the RMBS defaulted, played a significant role in selecting which RMBS should make up the portfolio."
Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO
On July 15, 2010, the SEC issued a litigation release, announcing that "Goldman, Sachs & Co. will pay $550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse."
Final Judgment as to Defendant Goldman, Sachs & CO.
On July 20, 2010, Federal District Judge Barbara S. Jones entered final judgment as to Goldman, Sachs & Co.
Other Defendants in Action:
